• 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No.1 232 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY t\lOTE 
10 ,ltll 12 P2 :06 
The Philippines continues to be plagued' by a high prevalence of infectious 
diseases. Compounding this problem is the alarming increase in the incidence of 
degenerative and lifestyle diseases like hypertension, cancer, accidents, and diabetes. 
As a result, funds for health care are more often spent in treating the sick than in 
keeping the population healthy. 
Preventing these diseases therefore must .be a priority of government. And to 
better assist government in this effort, people must be empowered and enabled to take 
action to improve their health. 
This is the concept of health promotion. It aims to promote health and well being 
among individuals, communities and populations, enabling them to address the broad 
determinants of health in, order to reduce vulnerability and risks to ill health and 
disability throughout the life cycle, especially among the poor and marginalized groups. 
Towards this end, there is a need to create a central agency with adequate and 
sustainable financing, as well as some degree of financial independence, in order to 
fully undertake health promotion activities such as health education, social mobilization 
and advocacy. 
The bill therefore proposes the creation of a Health Promotion Institute to be 
funded from tobacco and alcohol taxes to ensure its sustainability and viability. The aim 
of such a strategy is two-fold - it secures funding for health promotion and at the same 
time counter the negative effects on health that have resulted from decades of cigarette 
and alcohol advertisements. This is not a new concept and has been tried and tested in 
Australia, Korea, Thailand and New Zealand. Countries such as Malaysia, Mongolia and 
China are also on the verge of enacting similar legislation. 
I believe it is time to put health in the hands of the people by helping them make 
informed choices and become masters of their own destinies. Through the Health 
Promotion Institute, our goal of making Filipinos manage their own health by 2010 will 
become a reality. It is for these reasons that I urge the speedy enactment of this 
measure. 
MANNYV LAR 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No, 1232 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
10 
,)" ;'lI2. ' 
1J 
_ P2 :06 
ESTABLISHING A NATIONAL HEALTH PROMOTION INSTITUTE TO 
MAINSTREAM HEALTH PROMOTION IN THE PHILIPPINE HEALTH 
CARE SYSTEM, PROVIDING FOR A HEALTH PROMOTION FUND 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
PART I 
Preliminary Provisions 
Section 1. Short Title - This Act shall be known and sited as the "Health 
Promotion Act of 2010", 
Sec. 2. Declaration of Policy - It is hereby declared a policy of the State to protect 
and promote the right to health of the people and instill health consciousness among 
them. While every Filipino has an inherent right to health, this right has not been fully 
realized due to various factors that affect how- people take control of their health. 
Toward this end, the State shall endeavor to prol(ide adequate health information and 
promotion that will help people improve their health. It shall also be declared the policy 
of the State to provide sustainable funding for health promotion activities by allocating a 
certain percentage of tobacco and alcohol revenues for such activities, 
Sec. 3. Purpose - It is the main thrust of this Act to: 
a) Establish a Health Promotion Institute and provide adequate funding for its 
operations; 
b) Establish a Health Promotion Fund to be sourced from tobacco and alcohol 
taxes; 
c) Promote tobacco free sports, arts and cultural activities through sponsorship 
of such activities by the Institute, in consonance with the passage of RA 9211; 
d) 
Counter the ill effects of tobacco and alcohol advertisements by funding 
activities that will help reverse the negative effect of such advertisements. 
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Sec. 4. Definition of Terms - As used in this Act: 
a) Health Promotion -
means any act, which is aimed at the fostering of a 
person's physical, mental and social conditions by means of supporting 
personal behaviors, social conditions and environments conducive to physical 
strength, a firm mental condition, a long life and a good quality of life; 
b) Tobacco Taxes -
means taxes derived from the manufacture and sale of 
tobacco products; 
c) Alcohol Taxes -
means taxes derived from the manufacture and sale of 
alcohol beverages and liquors; 
d) Institute - refers to the National Health Promotion Institute established under 
this act; 
e) Board -
refers to the National Health Promotion Board which shall be the 
governing board of the Institute. 
. 
PART II 
Establishment of the Health Promotion Institute of the Philippines 
Sec. 5. Creation of the National Health Promotion Institute - There is hereby 
established a body corporate to be known as the. National Health Promotion Institute. 
The Institute shall have its principal place of business in Metro Manila and may 
establish branches and offices in such other places as may be deemed necessary for 
the performance of its mandate. It shall be organized within 180 days from the date of 
effectivity of this Act. 
Sec. 6. Corporate Powers of the Health Promotions institute - the Institute shall 
have the following corporate powers: 
a) To adopt, alter, and use an official seal which all courts, judges and persons all 
shall be judicially noticed; 
b) To acquire, hold and lease or own, real and personal property and sell, encumber 
or otherwise dispose of the same; 
c) To enter into, make and execute contracts and agreements of any kind or nature: 
d) To sue and be sued; 
e) To adopt its bylaws and promulgate such rules and regulations as may be 
necessary or proper to implement this Act, and to amend or repeal the same 
from time to time; 
f) To receive and acquire from any person and/or government and private entities, 
whether foreign or domestic, grants, donations and contributions consisting of 
such properties, real or personal, including funds and valuable effects or things, 
as may be useful, necessary or proper to carry out its purposes and objectives 
and administer the same in accordance with the terms of such grants, donations 
and contributions, consistent with its purposes and objectives; and 
g) To perform any and all acts necessary or incidental to achieve the objectives and 
purposes of this Act. 
Sec. 7. Functions of the institute -
The Institute shall perform the following 
responsibilities -
a) To promote health and prevent illness in the Philippines; 
b) To fund activities related to the promotion of good health, safety or the prevention 
of diseases and accidents; 
c) To increase awareness of programmes for promoting good health in the 
community through sporting and cultural activities; 
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d) To encourage healthy lifestyles in the community and support activities involving 
participation in healthy pursuits; 
e) To fund research' and development activity in support of these objects; and 
f) To coordinate all health promotion activities in the Philippines 
Sec. 8. Establishment of the Health Promotion Board - The corporate powers of 
the Institute shall be exercised, and all its business, activities an properties shall be 
controlled by a Board of Trustees, hereinafter ·,referred to a the Board, It shall be 
composed of the following: 
a) Secretary of Finance and the Secretary of Health as Co-chairpersons; 
b) Permanent Representatives of the following government offices: 
- Department of Education; 
- Commission on Higher Education; 
- Department of Science and Technology; 
- Public Information Agency; and 
- Philippine Sports Commission 
c) Representatives from the private sector to be appointed by the President upon 
the recommendation of the chairpersons such CIS 
- One (1) member from the academe/research institution; 
- One (I) representative from a health promotion NGO; 
- One (I) member from a duly recognize<;l national media organization; 
All private sector representatives shall have a non-renewable term of three years, 
Sec. 9. Functions and Duties of the Board - The Health Promotion Board shall 
perform the following functions: 
a. To define and approve the programs, plans, policies, procedures an guidelines for 
the Institute in accordance with its purposes and objectives and to control the 
management, operation and administration of the Institute; 
b. To approve the Institute's organizational structure, staffing pattern operating and 
capital expenditure, and financial budgets prepared in accordance with the 
corporate plan of the Institute; 
c. To approve salary ranges, benefits, privileges, bonuses and other term and 
conditions of service for all officers and employees of the Institute upon 
recommendation of the Director General; 
d. To appoint, transfer, promote, suspend, remove or otherwise discipline any 
subordinate officer or employee of the In~titute, upon recommendation of the 
Director General; 
e. To create such committee or committees and appoint members thereof, as may 
be necessary or proper for the management of the Institute or for the attainment 
of its purposes and objectives; 
f. To determine the priorities of the Institute consistent with the framework of its 
purposes and objectives and in coordination with other government agencies; 
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g. To exercise such other powers and functions and perform such other acts as may 
be necessary or proper for the attainment of the purposes and objectives of the 
Institute. 
Sec. 10. 
Conflict of Merest - A member of the Board who is in any way, 
whether directly or indirectly interested in a contract or proposed contract with the Board 
must, as soon as practicable after the relevant facts have come to his or her knowledge, 
declare the fact and the nature and extent of the interest, in writing to the Chairman, 
before the meeting of the Board and inhibit himself during the deliberations when such 
matter is taken up. The decision taken on the matter shall be made public and the 
minutes of the meeting shall reflect the disclosure made and the inhibition of the 
member concerned. 
Sec. 11. Removal from Office- The following are grounds for removal of any 
member of the Board: 
a) The member suffers from physical or mental incapacity that renders him or her 
incapable of properly discharging the duties and responsibilities of membership 
in the Board and such incapacity has lastec:j for more than six (6) months; or 
b) The member has committed acts or operations that are shown prima facie to be 
fraudulent or illegal or manifestly opposed to the aims and interests of the 
Authority; 
c) The member no longer possesses the qualifications specified in Section 8 of this 
Act; or 
d) The member is subsequently disqualified under the provisions of existing laws. 
Sec. 12 . Remuneration and Allowances. -The members of the board of trustees 
shall serve without compensation and allowances for the entire duration of their terms. 
However, each member of the Board of Trustees shall be entitled to per diem for every 
board meeting actually attended. The Board of Trustees shall fix the amount of per diem 
its members may be entitled to. 
Sec. 13. Meetings - The Board shall hold meetings at least twice a month for the 
conduct of its business or as often as maybe necessary upon the call of three (3) of its 
members. Any regular meeting shall be called by the Chairperson or in his absence, by 
any of the representatives of the Government to th!3 Board. 
The presence of a chairperson and three (3) members shall constitute a quorum. 
The Institute shall maintain and 
preserve a complete record 
of the 
proceedings/minutes of the Board which can be made available to the public when 
national interest so requires as may be determined by the Board. 
Sec. 14. Director General and Other Officers - The Institute shall be headed by a 
Director General who shall be a citizen of the Philippines, of good moral character, of 
unquestionable integrity, with at least 5 years experience in undertaking or leading 
health promotions activities. 
The Director General shall be appointed by the Board from a list of at least three 
(3) nominees prepared by a Selection Committee created by the Board and chaired by 
any of its members. 
The Director General shall be appointed for a term of six (6) years, which must 
be covered by a Performance Contract between the Institute and the Director General. 
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Said contract may be pre-terminated by the Board for failure or unsatisfactory 
performance of' his or her responsibilities. The Director General may also be removed 
from office due to serious misconduct, gross ana habitual neglect of duties, fraud or 
willful breach of trust, commission of a crime or offense and other causes analogous to 
the foregoing, as provided under the Administrative Code of 1987, the Revised Penal 
Code and other special laws, rules and regulations. 
The Director General shall be assisted by such Deputy Director General(s) and 
program managers/coordinators as the Board may determine to carry out the purposes 
and objectives of this Act. 
Sec. 15. Powers,-Functions and Duties of the Director General - The Director 
General shall have the following powers, functions' and duties: 
a. To exercise overall supervision and direction over the implementation of all 
programs of the Institute, and to supervise and direct the management, operation 
and administration of the Institute; 
b. To execute contracts, including deeds that may incur obligations, acquire and 
dispose assets and deliver documents on behalf of the Institute, within the limits 
of authority delegated to him by the Board; 
c. To implement and enforce policies, decisions, orders, rules and regulations 
adopted by the Board; 
d. To submit to the Board an annual report of the Institute; 
e. To submit to the Board an annual budget and such supplemental budget as may 
be necessary for its consideration and approval; and 
f. To exercise such other powers and functions and perform such other duties as 
may be authorized or assigned by the Board. 
PART III 
The Health Promotion Fund 
Sec. 16. Health Promotion Fund - To implement the provisions of this Act, there 
is hereby created a Health Promotion Fund, which shall be used exclusively for the 
operations, programs and projects of the Institute. As such, beginning fiscal year 2007 
and every year thereafter, five (5) percent of the excise tax collections on alcohol and 
tobacco shall be allotted for the Fund. 
. 
Sec. 17. 
Automatic Appropriation and Release of the fund -
The amount 
referred to in the preceding section shall be appropriated in the annual General 
Appropriations Act and released automatically in favor of the Health Promotion Institute. 
Sec. 18. Audit - All funds under the management and control of the Institute shall 
be subjected to an internal and external audit to be,done as follows: 
a. Internal Audit - There shall be an internal audit with respect to the finance, 
accounting and procurement of the Institute; with a corresponding audit report for 
submission to the Board, at least once a year. 
For the purpose of the internal audit, there ·shall be an official of the Foundation 
acting as an internal auditor with direct accountability to the Board, in accordance 
with the regulations prescribed by the Board. 
The Institute shall prepare a financial statement, which must include at least a 
balance sheet and an operation account to be submitted to the auditor within one 
hundred and twenty days as from the end of each accounting year. 
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b. External Audit - -At an interval of every year, the Commission on Audit or an 
outsider appointed by the Board with the approval of the Commission on Audit 
shall be the auditor and appraise the dispositions of money and property of the 
Institute. In this instance, opinions shall be analytically presented as to the extent 
to which such dispositions have corresponded to the objectives, proceeded in an 
economical fashion and met the targets. An audit report shall subsequently be 
prepared and submitted to the Board. 
For these purposes, the auditor shall have the power to inspect all account books 
of the Institute, interview and query the Director General, internal auditor, officials 
and employees of the Institute and instruct such persons to furnish any additional 
account books, documents, and evidence of the Institute as is necessary. 
Sec. 19. Annual Report - The Board shall submit to the Office of the President, 
the President of Senate and Secretary General of House of Representatives, within the 
first quarter of every year, an annual report which shall include, but is not limited to, 
reports on the operations and condition of the Authority and the implementation of this 
Act. 
PART III 
Transitory and Miscellaneous Provisions 
Sec. 20. Transfer of Functions and Powers - Upon the establishment of the 
Institute, the functions, personnel and assets of the National Center for Health 
Promotion (NCHP) of the Department of Health shall be transferred to the Institute 
without need of conveyance, transfer or assignment. 
For the year during which this Act was approved, the unexpended portion of the 
budget of the office merged shall be utilized for establishing the Institute and initiating its 
operations, including the formulation of rules and regulations I necessary for the 
implementation of this Act. 
Incumbent officials and employees of the affected office shall continue to 
exercise their respective functions, duties and responsibilities with the corresponding 
benefits and privileges. To the extent possible and in accordance with existing laws, all 
employees of the affected offices shall be absorbed by the Institute. 
Sec. 21. Implementing Rules and Regulations - The Board shall promulgate the 
IRR for this Act within ninety (90) days from its constitution. Failure to promulgate the 
IRR shall not affect the implementation of the self-executory provisions of this Act. 
Sec. 22. Separability Clause - If any provision or section of this Act is held 
invalid, the other provisions and sections not affected thereby shall remain in full force 
and effect. 
Sec. 23. Repealing Clause - All laws, exeCutive orders, administrative rules and 
regulations or parts thereof which are inconsistent with the provisions of this Act are 
hereby amended, modified, or repealed accordingly. 
Sec. 24. Effectivify Clause - This Act shall take effect fifteen (15) days following 
its publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved. 
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