Law for the Promotion and Development of Science 2014

The State must promote, guide, and encourage scientific, technological advancement and innovation; it is obligated to incorporate it into the plans and programs of economic and social development of the country, as well as to formulate plans for science, technology, and innovation, both for the medium and long term. Likewise, it must establish the mechanisms of relationship between its activities of scientific development, technological advancement, and innovation and those that, in the same fields, are advanced by universities, the scientific community, and the private sector.

The State must create favorable conditions for: the generation of scientific, technological knowledge and innovation; stimulating the innovative capacity of the productive sector; guiding the selective importation of technology applicable to national production; strengthening support services for scientific research and technological development; organizing a national system of scientific, technological information and innovation; consolidating the National System of Science, Technology and Innovation and, in general, to provide incentives for creativity, taking advantage of its productions in the improvement of life and culture of the Honduran population. CHAPTER II OF RIGHTS AND DUTIES IN MATTERS OF SCIENCE, TECHNOLOGY AND INNOVATION

The rights of citizens and the duties of the State in matters of the development of scientific knowledge, technological development, and innovation are:

• 1)

  Strengthen a culture based on the generation, appropriation, and dissemination of knowledge and scientific research, technological development, innovation, and continuous learning;

• 2)

  Define the bases for the formulation of the National Plan of Science, Technology and Innovation;

• 3)

  Incorporate science, technology, and innovation as cross-cutting axes of comprehensive development strategies and economic and social policies of the country;

• 4)

  Strengthen the impact of the National System of Science, Technology and Innovation in the social and economic environment, regional and international, to develop the sectors: productive, economic, social, and environmental in Honduras, through a focused institutional framework and the formation of integral, creative, critical, proactive, and innovative citizens, capable of making transcendental decisions that promote entrepreneurship and business creation that constructively influence economic, cultural, and social development;

• 5)

  Define the instances and administrative and financial instruments through which the promotion of the allocation of public and private resources to the promotion of Science, Technology and Innovation is advanced;

• 6)

  Articulate and optimize the instances of leadership, coordination, and execution of the Government and the participation of other actors in the policy and development of Science, Technology and Innovation;

• 7)

  Strengthen regional development through comprehensive policies of decentralization and internationalization of scientific, technological, and innovation activities, in accordance with international dynamics;

• 8)

  Guide the promotion of scientific, technological activities and innovation toward increasing productivity to achieve improved competitiveness; and,

• 9)

  Establish general provisions that lead to the strengthening of scientific knowledge and technological development and innovation for the effective fulfillment of this Law. CHAPTER III OF STATE POLICIES, PRINCIPLES AND CRITERIA

Public policies on the promotion and encouragement of science, technology, and innovation are guided by the following purposes:

• 1)

  Increase scientific, technological capacity and innovation to raise the competitiveness of the country and give greater added value to products and services of national origin and thus increase the well-being of the population in all its dimensions;

• 2)

  Incorporate scientific research, technological development, and innovation to improve comprehensive productive processes that increase productivity and improve the competitiveness of the national productive apparatus;

• 3)

  Establish mechanisms to promote the transformation and modernization of the national productive apparatus, stimulating productive reconversion and services based on the creation of companies with high technological content and setting greater priority to the national supply of innovations;

• 4)

  Integrate efforts of actors in scientific and technological development in different productive and service sectors to promote areas of knowledge strategic for the country's development;

• 5)

  Strengthen the capacity of the National System of Science, Technology and Innovation of the country to act comprehensively at the international level in matters relating to science, technology, and innovation;

• 6)

  Promote the quality of formal and non-formal education, in all spheres of education: basic, secondary, technical, and higher, to encourage the participation and development of new generations of researchers, entrepreneurs, technology developers, and innovators, as well as strengthen current generations; and,

• 7)

  Promote the development of regional strategies for the promotion of Science, Technology, and Innovation, taking advantage of potentialities in renewable and non-renewable natural resources, human capital, and biodiversity, optimizing the income received from their use, to achieve greater equity among the regions of the country in competitiveness, productivity, and general well-being.

The principles and criteria that guide the actions of promotion, development, and strengthening of Science, Technology, and Innovation, as well as research activities carried out by organisms and entities of the Public Administration, are the following: Continuity, timeliness, and sufficiency. Support for scientific, technological, and innovative activities must be continuous, timely, and sufficient to ensure their growth and sustainability. Decentralization. The instruments of support for Science, Technology, and Innovation function within the framework of territorial and institutional decentralization, promoting the harmonious development of the scientific and technological potential of the country and promoting the growth and consolidation of scientific communities in regions, departments, and municipalities. Dissemination. Institutions belonging to the National System of Science, Technology, and Innovation that receive support from the Government of the Republic must disseminate the results of their research and technological development and innovation, without prejudice to the corresponding intellectual property rights and information that, by reason of its nature, has a reserved character. Evaluation. The results of research and technological development activities that are subject to promotion, support, or incentive, in terms of this Law, are evaluated and taken into account for the granting of subsequent support. Review and updating. Policies and strategies supporting Scientific, Technological Development and Innovation are periodically reviewed and updated, so that they continuously impact the national productive apparatus. Transparency. Institutions, programs, projects, and persons subject to support must be selected through public calls, based on merit and quality criteria. Participation in decision-making. Scientific communities and social and productive sectors that are users or generators of science and technology must participate in the formulation and determination of general policies on Science, Technology, and Innovation, in the matters determined by the National Secretariat of Science, Technology, and Innovation. Protection. The State will promote and carry out the development of policies and instruments to manage, evaluate, protect, and recognize intellectual property of developments in science, technology, and innovation. TITLE II OBJECTIVES, COMPONENTS AND SCOPE OF ACTION OF THE LAW CHAPTER I OBJECTIVE OF THE LAW

This Law has the objective of creating the National System of Science, Technology, and Innovation, developing the guiding principles regarding Science, Technology, and Innovation and their applications, defining the guidelines that orient the policies and strategies for Scientific, Technological Activity, Innovation and their applications, the implementation of institutional and operational mechanisms for the promotion, encouragement, and fostering of scientific research, social appropriation of knowledge, and technological transfer and innovation, fostering research and technological development for innovation in productive and service sectors, organizing the National System of Science, Technology, and Innovation, in order to foster the capacity for the generation, use, and circulation of knowledge and promote sustainable economic development and social well-being.

The National System of Science, Technology, and Innovation has the following specific objectives:

• 1)

  Propitiate the generation, modification, adaptation, and application of knowledge, through Scientific, Technological Development and Innovation, as essential activities to give added value to national resources, human, geographic, territorial, natural (renewable and non-renewable); create new companies based on research and technological development and innovation; achieve higher and sustained rates of economic growth, promote the accumulation and equitable distribution of wealth, in order to improve the levels of quality of life of citizens;

• 2)

  Promote and consolidate, with a long-term vision for national scientific and technological development; research centers and groups of particular scientific and technological institutions of Higher Education, whether public or private, technology development centers, technology parks, productivity centers, institutions dedicated to the social appropriation of Science, Technology and Innovation, knowledge management, administration, and promotion entities, technology-based business incubators, and the development of human capital, academies and scientific, technological societies, different knowledge networks, and scientific-technological initiatives of organizations and individuals aimed at strengthening the system;

• 3)

  Promote and consolidate through different instruments and mechanisms of scientific-technological policy, increasing and sustainable public and private investment in research, technological development, innovation, and formation of human capital, for science, technology, and innovation, as determinant instruments of the dynamics of economic, social, and environmental development;

• 4)

  Design contemporary and visionary models of economic and social development that use intensively and extensively Science, Technology, Innovation, and knowledge, based on processes of permanent and democratized teaching and learning of science, technology, and innovation, governed by public policies, under the non-delegable responsibility of the State;

• 5)

  Conduct foresight, make decisions, and undertake actions in matters of science, technology, and innovation, to contribute to the joint and integrated construction of future scenarios that promote structural transformation and higher levels of development of Honduras in the world context;

• 6)

  Promote coordination, monitoring, and evaluation of policies and national development of Science, Technology, and Innovation, with the foreign policy of the State, to promote its linkage with initiatives and strategic international projects of Science, Technology, and Innovation that favor national development;

• 7)

  Articulate the system and its actors with other Honduran and international systems and instances existing, so that each of the components fulfills the specific role that corresponds to it in the process, creating synergy and optimization of resources;

• 8)

  Monitor and evaluate national policy on Science, Technology, and Innovation; and,

• 9)

  Promote and evaluate the strategic alliance university-enterprise-government, in order to jointly develop Science, Technology, and Innovation in sectors strategic for the economic and social development of the country. The fulfillment of the objectives must be done respecting the competencies of the entities that form part of the National System of Science, Technology, and Innovation and the coordination and complementarity established in the national plans for science, technology, and innovation. CHAPTER II COMPONENTS

The National System of Science, Technology, and Innovation is an open system, of which the following are part: Public, private, or mixed organizations and associations that carry out or promote the development of scientific, technological activities and innovation, as well as the policies, strategies, programs, methodologies, and mechanisms for the management, promotion, financing, protection, and dissemination of scientific research, technological development, and innovation. The public, private, or mixed organizations to which this Article refers may be subject to support by recognized institutions that promote and encourage Science, Technology, and Innovation. Each promoting institution must establish the nature of such support and the conditions under which it can be obtained, in accordance with the policy guidelines and the national plan for Science, Technology, and Innovation that guide the action of the system, in accordance with the regulations that govern this field. Municipalities and regions may create regional units for scientific research and innovation, with their own resources, through strategic alliances, or through fund management with national or foreign institutions. CHAPTER III SCOPE OF ACTION

In accordance with this Law, actions in matters of Science, Technology, and Innovation and their applications are directed to:

• 1)

  Formulate, promote, and evaluate national plans regarding Science, Technology, Innovation, and their applications, designed for the short, medium, and long term;

• 2)

  Encourage and promote training programs necessary for Scientific, Technological Development and Innovation in the country;

• 3)

  Establish incentive programs for research and development activities and technological innovation;

• 4)

  Concert and implement international cooperation policies favorable to supporting the development of the National System of Science, Technology, and Innovation;

• 5)

  Intersectoral coordination of other public entities and organisms dedicated to research, scientific and technological training and capacity-building, required to support the development and adaptation of the National System of Science, Technology, and Innovation;

• 6)

  Promote the strengthening of adequate infrastructure and equipment for support services to research and development institutions and technological innovation;

• 7)

  Encourage the technological innovation capacity of the productive, business, and academic sector, both public and private;

• 8)

  Encourage the creation of financing funds for the activities of the National System of Science, Technology, and Innovation;

• 9)

  Develop programs for the assessment of scientific and technological research to facilitate appropriate technological transfer and innovation;

• 10)

  Promote the establishment of national and regional networks of scientific and technological cooperation;

• 11)

  Promote mechanisms for the dissemination, diffusion, and exchange of results of research, development, and technological innovation activities generated in the country;

• 12)

  Create a National System of Scientific, Technological Information and Innovation;

• 13)

  Promote the creation of legal instruments and others to optimize the development of the National System of Science, Technology, and Innovation; and,

• 14)

  Encourage the participation of the private sector, through mechanisms that allow the investment of financial resources for the development of scientific, technological activities, innovation, and their applications.

Science, Technology, Innovation activities and their applications, as well as the use of the results, must be aimed at contributing to the well-being of Honduran society, poverty reduction, respect for dignity, human rights, and preservation of the environment. TITLE III OF THE INTEGRATION, PURPOSE AND INSTITUTIONS OF INTEREST OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY, AND INNOVATION CHAPTER I OF THE INTEGRATION AND PURPOSE OF THE SYSTEM

The National System of Science, Technology, and Innovation is composed of the National Secretariat of Science, Technology, and Innovation (SENACIT) and the Honduran Institute of Sciences, Technology, and Innovation (IHCIETI). The System also has the National Council for the Promotion of Science, Technology, and Innovation (CONFOCIT), the National Financing Fund for Science, Technology, and Innovation (FONAFICIT), whose actions are within the framework of the National Plan for Science, Technology, and Innovation.

The National System of Science, Technology, and Innovation has as its purpose to create an institutional structure that allows coordinating, organizing, promoting, encouraging, and guiding the development of science and technology in the country. CHAPTER II OF INSTITUTIONS OF INTEREST OF THE SYSTEM

Part of the National System of Science, Technology, and Innovation are the public or private institutions that generate and develop scientific and technological knowledge, such as innovation processes, and persons dedicated to planning, administration, execution, and application of activities that enable effective linkage between science, technology, society, and the comprehensive development of the country. To that end, the subjects that form part of the System are:

• 1)

  The institutions mentioned in Article 11 of this Law;

• 2)

  Institutions of higher education and technical training, national academies, professional associations, scientific societies, laboratories, and research and development centers, both public and private, that carry out scientific and technological research and management activities;

• 3)

  Organisms of the private sector, technology-based companies, providers of technological services, technological inputs and technology-intensive capital goods, information networks and technological assistance that are incorporated into the System for their capacity in scientific, technological, and innovative research matters;

• 4)

  Research and development units of scientific and technological advancement, as well as information and communication technology units of all public organisms; and,

• 5)

  Persons that are part of public or private institutions that carry out science, technology, innovation activities and their applications; TITLE IV OF THE ORGANIZATIONAL STRUCTURE, FUNCTIONS AND BUDGET OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY, AND INNOVATION CHAPTER I OF THE ORGANIZATIONAL STRUCTURE OF THE SYSTEM

The National Secretariat of Science, Technology, and Innovation (SENACIT) is created, headed by a National Secretary with the rank of State Secretary, having the powers and functions granted by this Decree, the General Law of Public Administration, and other laws. The organization of the National Secretariat of Science, Technology, and Innovation (SENACIT) must respond to a modern, simple, and efficient scheme for agile and effective functioning, counting for this purpose with a State Secretary without assigning a particular office so that he advises the President of the Republic on matters of his competence. The National Secretariat of Science, Technology, and Innovation acts as coordinator of the National System of Science, Technology, and Innovation, in the actions of Scientific, Technological Development and Innovation. The mechanisms of communication and participation in the National System of Science, Technology, and Innovation must be defined in the Regulation of this Law.

The Honduran Institute of Sciences, Technology, and Innovation is created, hereinafter referred to as IHCIETI, as an entity under public law, of permanent character with legal personality and its own assets, with administrative and financial autonomy. The highest authority of the Institute is the Executive Director, a position that must be held by the same National Secretary of Science, Technology, and Innovation. The legal domicile of the Institute is the city of Tegucigalpa, Municipality of the Central District, being able to create and establish offices in other cities of the country, as well as abroad, through strategic alliances or other mechanisms. The purpose of the Honduran Institute of Sciences, Technology, and Innovation (IHCIETI) is: to promote, develop, and strengthen the structures for the functioning of the system of science, technology, and innovation for the development of the country; constituting itself in the technical instance of permanent character with qualified personnel through a selection process according to merit. CHAPTER II OF THE FUNCTIONS OF THE NATIONAL SECRETARIAT AND THE HONDURAN INSTITUTE OF SCIENCE, TECHNOLOGY, AND INNOVATION

The functions of the National Secretariat of Science, Technology and Innovation (SENACIT) and the Honduran Institute of Sciences, Technology and Innovation (IHCIETI) must be established in the Regulation, in accordance with what is established in the different chapters and articles that make up this Law.

The National Secretariat of Science, Technology and Innovation promotes and coordinates inter-institutional efforts that other government entities develop in this matter. CHAPTER III BUDGET OF THE NATIONAL SECRETARIAT AND THE HONDURAN INSTITUTE OF SCIENCE, TECHNOLOGY AND INNOVATION

The necessary resources for the organization and operation of the National Secretariat of Science, Technology and Innovation (SENACIT) and the Institute of Science, Technology and Innovation (IHCIETI) must be included in the General Budget of Income and Expenses of the Republic. TITLE V NATIONAL PLAN FOR SCIENCE, TECHNOLOGY AND INNOVATION CHAPTER I NATIONAL PLAN FOR SCIENCE, TECHNOLOGY AND INNOVATION

The National Plan for Science, Technology and Innovation is the instrument of planning and guidance of State management, to establish guidelines and national policies in matters of Science, Technology and Innovation, as well as for the estimation and mobilization of the necessary resources for its execution. CHAPTER II DEVELOPMENT OF THE NATIONAL PLAN FOR SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must prepare the National Plan for Science, Technology and Innovation prior to approval by the National Council for the Promotion of Science, Technology and Innovation (CONFOCIT) under the terms provided by this Law and its Regulation. CHAPTER III OBJECTIVES OF THE NATIONAL PLAN FOR SCIENCE, TECHNOLOGY AND INNOVATION

The National Plan for Science, Technology and Innovation defines a concerted vision that in matters of Science, Technology, Innovation and their applications should be achieved by the public sector, complementing the functions, efforts and resources carried out by the private sector, both at the national level, as well as at the regional, departmental and municipal levels, as well as the actions that, through agreement, the private sector and universities fulfill, based on foreseeable needs and available resources. A high priority objective that the national plan must establish for scientific and technological development is the continuous generation of Science, Technology and Innovation as the priority economic factor for the development and structural change of the country.

The National Plan for Science, Technology and Innovation must contain objectives to be achieved in the prioritized and defined areas in a manner that allows their monitoring, evaluation, control and regulation; a process that is the responsibility of the Honduran Institute of Sciences, Technology and Innovation (IHCIETI). The National Plan for Science, Technology and Innovation must be fundamentally oriented according to the following lines of action:

• 1)

  Research and technological development, in constant evolution, to improve the quality of life of Hondurans;

• 2)

  Generation of knowledge and promotion of talent;

• 3)

  Promotion of quality and productive innovation;

• 4)

  Development and strengthening of technological and scientific capabilities in general;

• 5)

  Strengthening and articulation of networks of scientific cooperation and technological innovation; and,

• 6)

  Innovation of public management and social articulation of science and technology. CHAPTER IV EXECUTION CRITERIA OF THE NATIONAL PLAN FOR SCIENCE, TECHNOLOGY AND INNOVATION

The development and execution of the National Plan for Science, Technology and Innovation, and the operative mechanisms of the National System of Science, Technology and Innovation shall be governed by the following criteria:

• 1)

  Interactive and coordinated functioning among the elements, institutions and norms that compose them;

• 2)

  Respect for the plurality of theoretical and methodological approaches, encouraging the creation of knowledge, stimulating interdisciplinary and multidisciplinary approaches and providing or strengthening the necessary adaptive capacity to respond to the demands of society;

• 3)

  Promotion of regional, departmental and municipal decentralization, deconcentration and harmonious growth of the country;

• 4)

  Establishment of strategic alliances between the public and private sectors within a framework that facilitates the transfer and use of knowledge by Honduran society;

• 5)

  Promotion of the participation of the members of the System and other members of society; and,

• 6)

  Use of prospective research on worldwide scientific, technological and innovative transformations. CHAPTER V FINANCIAL COORDINATION OF THE NATIONAL PLAN FOR SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must promote and coordinate with academic, scientific and technological entities, both public and private, the financing for the realization of the activities provided for in the National Plan for Science, Technology and Innovation. TITLE VI PROGRAMS AND PROJECTS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION CHAPTER I PARTICIPATION IN FINANCING PROGRAMS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

Public and private institutions and organizations that are members of the National System of Science, Technology and Innovation, which request to participate in financing programs offered by the National Secretariat of Science, Technology and Innovation for the execution of the National Plan for Science, Technology and Innovation, and which are selected based on the merits and quality of their proposals, may be required to provide resources to co-finance these programs. The respective contributions must be set by mutual agreement, taking into account the possibilities and economic conditions of the parties involved. CHAPTER II SELECTION OF PROJECTS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must evaluate and select the programs and projects susceptible to financing, based on the priority areas of development or necessary for the social and economic progress of the country that had been determined and prioritized. Notwithstanding that such technical evaluations may be carried out by any of the specialized organisms or entities attached to the Secretariat and that it has selected for such purposes. CHAPTER III FINANCING CONTRACTS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

Everything concerning the financing, operational and contractual aspects relating to projects and programs to be granted by the National Secretariat of Science, Technology and Innovation or its attached organisms, must be determined in the Regulation of this Law. The fines stipulated in the contracts for non-compliance must be deposited in the National Financing Fund for Science, Technology and Innovation (FONAFICIT). CHAPTER IV INTERNATIONAL COORDINATION OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must promote and develop policies and programs aimed at guiding international cooperation for the strengthening of the National System of Science, Technology and Innovation. CHAPTER V RESEARCH CENTERS OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must conduct studies to create research centers that it considers necessary to promote scientific and technological research in the priority areas of economic and social development of the country. CHAPTER VI POPULAR INVENTION AND INNOVATION OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Secretariat of Science, Technology and Innovation must create mechanisms of support, promotion and dissemination of popular inventions and innovations, fostering their transformation into processes, systems or products that generate benefits to the population or achieve a positive economic or social impact. TITLE VII NATIONAL COUNCIL FOR THE PROMOTION OF SCIENCE, TECHNOLOGY AND INNOVATION CHAPTER I CREATION OF THE NATIONAL COUNCIL FOR THE PROMOTION OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Council for the Promotion of Science, Technology and Innovation, hereinafter referred to as CONFOCIT or The Council, is hereby created as the superior body for the formulation and execution of Science and Technology plans, with their programs, projects and specific policies and annual operating plans; it is comprised of representatives of the institutions established in Article 13 of this Law, being composed as follows:

• 1)

  The National Secretary of Science, Technology and Innovation, with the rank of Secretary of State, who presides over it, or their legal substitute;

• 2)

  The Secretary of State in the Office of the Technical Secretariat for Planning and External Cooperation or their legal substitute;

• 3)

  The Secretary of State in the Office of the Secretariat of Agriculture and Livestock;

• 4)

  The Secretary of State in the Office of the Secretariat of Industry and Commerce;

• 5)

  The Secretary of State in the Office of the Secretariat of Natural Resources and the Environment;

• 6)

  The Secretary of State in the Office of Labor and Social Security;

• 7)

  The Secretary of State in the Office of Education;

• 8)

  A representative of the National Autonomous University of Honduras (UNAH);

• 9)

  A representative of Private Universities accredited through the Association of Private Universities of Honduras (ANUPRIH);

• 10)

  A representative of the National Academy of Sciences;

• 11)

  A representative of the productive sectors and scientific-technological services designated by the Honduran Council of Private Enterprise (COHEP); and,

• 12)

  Two (2) representatives of public or private persons that carry out activities of Science, Technology, Innovation and their applications. CHAPTER II REGARDING THE POWERS OF THE NATIONAL COUNCIL FOR THE PROMOTION OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Council for the Promotion of Science, Technology and Innovation (CONFOCIT) has the following powers:

• 1)

  Approve strategies and policies in priority fields of Honduran development;

• 2)

  Approve the national plan for science, technology and innovation, with their programs, projects and specific policies;

• 3)

  Approve the annual operating plan of the Institute, as well as modifications thereof as proposed by the Executive Director;

• 4)

  Approve the multi-year and annual budget of income and expenses of the Institute as well as modifications thereof as proposed by the Executive Director;

• 5)

  Approve the internal regulations prepared by the Executive Director for the organization and administration of the Institute;

• 6)

  Hold ordinary sessions preferably every three (3) months, and extraordinary sessions whenever necessary;

• 7)

  Approve contracts and agreements for technical and financial cooperation with national and international organizations to be entered into by the Institute;

• 8)

  Review reports of income and expenses of the Institute;

• 9)

  Organize support committees for the work of the Executive Director;

• 10)

  Approve the annual financial plan presented by the Executive Director regarding the administration of the funds managed by the institute;

• 11)

  Approve the establishment of trusts;

• 12)

  Approve the regulations necessary for the execution of this Law and submit them for approval to the Executive Branch; and,

• 13)

  The other powers attributed to it in this Law and in the regulations that may be issued. TITLE VIII REGARDING THE FUND OF THE NATIONAL SYSTEM OF SCIENCE, TECHNOLOGY AND INNOVATION

The National Fund for Financing Science, Technology and Innovation (FONAFICIT) is hereby created, under the charge of the National Secretariat of Science, Technology and Innovation, whose resources are administered through an autonomous estate. For these purposes, the National Secretariat of Science, Technology and Innovation must establish a trust following public bidding. The resources of the Fund may not be used to finance the operation of the National Secretariat of Science, Technology and Innovation, nor of the Institute of Science, Technology and Innovation, nor of any other public entity. The value of the trustee commission must be paid from the financial income produced by the administered resources. The National Secretariat of Science, Technology and Innovation is the sole settlor of the autonomous estate denominated National Fund for Financing Science, Technology and Innovation.

The acts and contracts executed by the Fund are subject to the State contracting regulations and are under the tax regulation of the Superior Court of Accounts (TSC).

The resources of the National Fund for Financing Science, Technology and Innovation are the following:

• 1)

  The resources from the General Budget of Income and Expenses of the Republic that are designated for financing science, technology and innovation activities and that have been programmed therein, to be executed through the Fund;

• 2)

  The resources coming from the private sector and international cooperation oriented to the support of science, technology and innovation activities;

• 3)

  The financial contributions coming from the members of the National System of Science, Technology and Innovation;

• 4)

  The donations or bequests made by natural or legal persons, national or foreign; and,

• 5)

  The financial income coming from the investment of the resources of the Trust.

The National Secretariat of Science, Technology and Innovation must include a Chapter within the Biannual Report to the National Council for the Promotion of Science, Technology and Innovation and to the President of the Republic, in which the allocation and use of the resources of the National Fund for Financing Science, Technology and Innovation is detailed.

With the resources of the National Fund for Financing Science, Technology and Innovation, only the following operations may be carried out: 1) Finance programs, projects, entities and activities of Science, Technology and Innovation; and, 2) Invest in venture capital funds or other financial instruments, for the support of programs, projects and activities of Science, Technology and Innovation. The resources of the National Fund for Financing Science, Technology and Innovation must be invested seeking optimal balance among security, profitability and liquidity; these investments must be made in accordance with the limits and other directives established in the Investment Regulations issued for such purposes by the National Secretariat of Science, Technology and Innovation.

The operations, investments and results carried out with resources of the National Fund for Financing Science, Technology and Innovation must be published on the website of the National Secretariat of Science, Technology and Innovation and are subject to the oversight and control of The Council and the general public.

The National Secretary of Science, Technology and Innovation, as Executive Director of the Honduran Institute of Science, Technology and Innovation, must create and maintain an updated information system regarding the beneficiaries, amounts requested, amounts approved and all pertinent data that allows for having updated and reliable information.

The National Fund for Financing Science, Technology and Innovation in order to finance on a permanent basis the programs and projects contemplated in the National Plan of Science, Technology and Innovation, requires that financial contributions be made for its permanent sustainability, in the following manner:

• 1)

  The members of the National System of Science, Technology and Innovation, that commercialize intellectual property of goods and services, developed with resources coming partially or totally from financing granted through the National Secretariat of Science, Technology and Innovation or its attached organisms, must contribute in accordance with the modality of such financing, an amount comprised between one-tenth of a percent (0.1%) and one-half percent (0.5%) of the gross income obtained from such commercialization;

• 2)

  The large enterprises of the country, as well as corporations established abroad that are domiciled in Honduras and that carry out activities of exploitation and other productive sectors in the national territory, must annually contribute an amount negotiated with the National Secretariat of Science, Technology and Innovation (SENACIT) and formalized according to an agreement executed between the parties. The activities considered among others are those of Hydrocarbons and Gaseous Hydrocarbons; mining exploitation, in its processing and distribution; the generation, distribution and transmission of electricity; the sectors of production of goods and provision of services; and,

• 3)

  Those generated by fines established in Article 27 of this Law. The Regulation of this Law must establish the mechanisms, modalities and forms in which the subjects indicated in this Article must make the financial contributions to the National Fund for Financing Science, Technology and Innovation. TITLE IX REGARDING THE FORMATION OF HUMAN CAPITAL CHAPTER I PROMOTION AND STIMULATION OF HUMAN CAPITAL

The Honduran Institute of Sciences, Technology and Innovation (IHCIETI) must promote and stimulate the formation and training of specialized human talent in matters of science, technology and innovation and their applications. CHAPTER II INCENTIVES FOR INSERTION AND MOBILIZATION

The Honduran Institute of Science, Technology and Innovation shall create a specialized system that provides training, formation, treatment, follow-up and evaluation to human talent with special skills and abilities and as a result thereof provide opportunities to children, youth and adults with exceptional performance in education in their academic career, advanced learners, advanced students, in the measure of the Common Citizen and whose evaluations determine innovations, geniality and technological abilities that allow for preserving and developing that talent for the benefit of the country. A special Regulation will provide treatment to this Program. CHAPTER II INCENTIVES FOR INSERTION AND MOBILIZATION

The Honduran Institute of Sciences, Technology and Innovation (IHCIETI) must design and implement the necessary incentives to stimulate the formation and insertion of specialized human capital in enterprises, academic institutions, research centers and services. Likewise, implement incentives aimed at the exchange and mobilization of human talent between enterprises and academic institutions.

The Honduran Institute of Science, Technology and Innovation (IHCIETI) stimulates the formation of specialized talent, through the total or partial financing of their studies and research and through incentives, such as: awards, scholarships, subsidies, or any other recognition that serves to promote scientific, technological and innovation production.

The Honduran Institute of Sciences, Technology and Innovation (IHCIETI) stimulates early vocations toward research and development, in consonance with the educational, social and economic policies of the country. TITLE X REGARDING TAX INCENTIVES FOR ENTERPRISES

The Institute must propose before the competent bodies a generalized framework of tax incentives to support investments by innovative companies with real comparative advantages and their increase as a fiscal result, in sectors that are priorities for Honduran development, in the fields of basic and applied research, research and technological development and its resulting innovation in companies.

To support the introduction of technological innovations, both in products and in processes, as well as in the areas of business organization, marketing, logistics, human talent development, both for innovative companies with comparative advantages, at the national level as well as for companies in the Special Zones of Development and Employment (ZEDES), the Honduran Institute of Sciences, Technology and Innovation (IHCIETI) must manage resources from sources of national and international cooperation, which must be deposited in the National Fund for Financing Science, Technology and Innovation, through a system of donations and credits under favorable conditions. TITLE XI OF FINAL AND TRANSITORY PROVISIONS

For the organization and operation of the National Fund for Financing Science, Technology and Innovation, the Central Government must contribute a seed capital equivalent to the sum of FIFTY MILLION LEMPIRAS (L.50,000,000.00) which must be included in the General Budget of Income and Expenses of the Republic for 2014.

The National Secretariat of Science, Technology and Innovation integrates into its organization the functions, assets, resources and budget that in matters of science, technology and metrology are assigned to the Technical Secretariat of Planning and External Cooperation (SEPLAN).

The budgetary resources, assets and liabilities assigned to the Presidential Office for the Program of Scientific and Technological Development (PRODECYT) must be assigned to the National Secretariat of Science, Technology, as of the General Budget of Income and Expenses of the Republic that is formulated for the fiscal year 2014, for the financing of its activities of scientific and technological development.

The Executive Branch, through the National Secretariat of Science, Technology and Innovation, must issue the Regulations of the present Law, within a period of sixty (60) days counted from the date of publication of this Law.

The present Law enters into force on the day of its publication in the Official Gazette La Gaceta. Done in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the twenty-first day of the month of December of two thousand thirteen. MAURICIO OLIVA HERRERA PRESIDENT, FOR THE LAW GLADIS AURORA LÓPEZ CALDERÓN SECRETARY ELISEO NOEL MEJÍA CASTILLO SECRETARY To the Executive Branch. Therefore: Execute. Tegucigalpa, M.D.C., January 24, 2014. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE OF THE PRESIDENTIAL OFFICE. MARÍA ANTONIETA GUILLEN VÁSQUEZ