FOURTEENTH CONGRESS OF THE 
1 
REpmLrc OF THE PHLPPINES 
1 
First Regular Session 
) 
%NO. 
. ‘I708 
Introduced bv Senator Antonio F. Trillanes TV 
Explanatory Note 
Health research is vital in the improvement of the blueprint and strategies for health 
interventions, policies and service delivery. It encompasses all different types of research 
including basic, fundamental, laboratory, biomedical, clinical, applied, epidemiology, 
psychosocial, population health, health promotion, policy development, health economics, health 
systems and health delivery systems. Many of the components of a successful research 
environment include among others, the need for training, skilled researchers, protection of time, 
a supportive environment, peer review, dissemination and implementation of research results, 
effective alliances and partnerships, and, of course, the financial resources to support the activity. 
The health research landscape is composed mainly of national agencies such as the Department 
of Health (DOH) and Department of Science and Technology (DOST), the academe, people’s 
organizations, medical societies and policy-makers. The implementation of researches is 
accdmplished through a health research network composed of public and private research 
institutions working in unison or independently to respond to the national health needs. 
In Republic Act No. 8503, also known as the “Health Research and Development Act of 1998” 
the National Institutes of Health, . . , a unit of the University of the Philippines-Manila (UPM), 
was established as a center for excellence for health research and development, mandated to (I) 
promote science and technology research and development in the field of health; (2) promote the 
development of study groups and research programs; (3)establish mechanisms for the 
dissemination and utilization of research outputs; and (4) ensure that the results of health 
research and development activities are utilized to improve the health of the people. 
Executive Order No. 102 mandates the Department of Health to provide assistance to local 
government units, peoples’ organizations, and other members of the civic society in effectively 
implementing programs, projects and services that will promote the health and well-being of 
every Filipino, prevent and control diseases among populations at risk, protect individuals, 
families and communities exposed to hazards and risks that could affect their health, and treat, 
manage and rehabilitate individuals affected by disease and disability. 
By virtue of Executive Order No. 128, the Department of Science and Technology through the 
Philippine Council for Health Research and Development, is mandated to (1) provide central 
direction, leadership and coordination of scientific and technological efforts; (2) formulate and 
implement policies, plans, programs and projects for the development of scientific and 
technological activities in the public and private sectors; and (3) ensure that the results of 
scientific and technological activities are properly applied and utilized to accelerate economic 
and social development. 
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In the 1999 Center for Economic Policy Research study on the flow of funds for health research 
and development, it was reported that the government’s budget in 1996 allocated less than 1% 
for research and development resources, only 17% of which was allotted for health research. 
Respondents to the survey claimed that a large chunk of health R & D funds came from the 
private sector (45%) led by private hospitals. However, despite increasing support from the 
private sector, the total health R & D expenditures are still far below the World Health 
Organization-recommended level of 5% of total health expenditures. 
Our country’s ability to ensure optimum health fur every Filipino hinges on the degree of priority 
we grant to health research and development (R & D) activities. This bill, therefore, seeks to 
oblige a number of government institutions to allocate a particular portion of their gross annual 
revenue or charge additional fees for health research and development activities. 
AN~ONIO F. TRJLLANES IV 
Senator 
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FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
Introduced by Senator Antonio F. Trillanes IV 
AN ACT 
INSTITUTIONALIZING THE PHILIPPWE NATIONAL HEALTH RESEARCH SYSTEM, 
ESTABLISHING THE! PHILIPPINE? NATIONAL HEALTH RESEARCH FUND 
PROVIDING FOR ITS ADMINISTRATION AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines In Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as the “Philippine National Health 
Research System Act of 2007.” 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to: 
a) protect and promote the right of health of the people and instill health consciousness 
b) improve the quality of life of every Filipino through health research and development 
among them; and 
initiatives. 
SECTION 3. De3nition of Terms. For purposes of this Act, the term: 
a) “Health” is defined as a state of optimal physical, mental and social well-being and 
ability to function at the individual level, and not merely the absence of disease or 
infirmity. 
b) “Research and development (R & D) for health” is a global term to describe research 
and development activities undertaken to identify, resolve and prevent health problems 
and improve well-being. This encompasses all different types of research including 
basic, 
fundamental, laboratory, 
biomedical, 
clinical, 
applied, epidemiology, 
psychosocial, population health, health promotion, policy development, health 
economics, health systems and health delivery systems. 
c) “Philippine National Health Research System (PNHRS)” is a framework anchored on 
the principles of Essential National Health Research on inclusiveness, participation, 
quality, equity, efficiency and effectiveness, which connect to, and converge with, the 
wider health, economic, political, educational and science and technology (S & T) 
systems of the country. 
d) “National Unified Health Research Agenda” describes the overall directions and the 
important general principles, issues and priorities which should be addressed in the 
national plan for health R and D under the National Health Research System. The 
research will be based on a unified national health research agenda for the local and 
national levels. 
e) “Core agencies” refer to the main national health and health related agencies namely: the 
Department of Health (DOH), the Department of Science and Technology-Philippine 
Council for Health Research and Development (DOST-PCHRD), University of the 
Philippines Manila - National Institutes of Health ((UPM-NIH), and the Commission on 
Higher Education (CHED). 
“Philippine National Health Research Fund (PNHRF)” means a special fund which by 
legislative action, segregates specified revenues for health research purposes. 
f) 
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g) “Health research stakeholders” include the national and the local private and public 
health agencies, policy makers, the academe, medical societies, people’s organizations, 
and others which may have the roles of health researchers, program administrators and 
beneficiaries. 
h) “Management of Fund” - involves the generation, allocation and utilization, of the 
PNHRF, including government and non-government sources both domestic and 
international sources. 
Title I 
Philippine National Health Research System 
SECTION 4. Creation of the Philippine National Health Research System. The Philippine 
National Health Research System (PNHRS) is hereby constituted to improve the health status, 
productivity, and the quality of life of Filipinos by: 
a) producing new knowledge through research; 
b) developing a national and global network of researchers, research organizations, and 
other members of the health research community; 
c) deepening the involvement of stakeholders; 
d) securing sustainable financing for health research and development; 
e) building capacities for health research and development activities; 
f) encouraging individuals to pursue research as a career; 
g) inculcating internationally and culturally accepted ethical standards and 
principles 
especially in researches involving human subjects and participants; 
h) ensuring public access to the information and other outputs generated by the health 
research systems; and 
i) encouraging the utilization of research results in the form of products, technologies, 
programs and services. 
SECTION 5. Composition ofthe PNHRS. The PNHRS shall be composed of the Governing 
Council (GC), 
the Secretariat and the various committees and the whole health research 
community. The interrelationships among these various components shall be described in the 
IRR of this Act. 
SECTION 6. Creation of the PNHRS Governing Council. The PNHRS GC, whose functions 
are enumerated in Section 6 shall be composed of the following: 
1) 
The Secretary of the Department of Science and Technology (DOST) or in hisker behalf, 
the Executive Director of PCHRD; 
2) 
The Secretary of the Department of Health (DOH) or hisher designated permanent 
representative occupying the position of not lower than Assistant Secretary; 
3) 
The Chair of the Commission on Higher Education (CHED)or in hidher behalf, the 
Commissioner in charge for research; 
4) 
The Chancellor of the University of the Philippines Manila (UPM) or in hisher behalf, the 
Executive Director of National Institutes of Health (NIH); 
5) The President of the Philippine Health Insurance Corporation (PHC); 
6) 
The Director General of the National Economic Development Agency (NEDA) or in 
hisher behalf, the Director of Social Development Services; 
7) Representative from the Philippine Pharmaceutical Industry (PPI); 
8) 
Representative from a non-government organization (NGO) working primarily on health 
research; 
9) Representative from Academe; 
10) Representative from League of Governors; and 
1 1) Representative from Regional Health Research System. 
Representatives of the Core and the other government agencies shall serve as Ex-Officio 
Members while those mentioned in paragraphs 7 to 11 shall be nominated by the core agencies, 
and appointed by the President of the Philippines for a term of three (3) years; provided however, 
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that for those first appointed representatives from PPI, NGO network and academe shall serve 
for three (3) years and those first appointed representatives from the League of Governors and 
the Regional Health Research Development Committees shall serve for two (2) years. The 
qualifications of the representatives mentioned in subparagraphs 7-1 1 shall be provided for in the 
Implementing Rules and Regulations of this Act. 
Majority of the members of the GC shall constitute a quorum in all meetings and ex-officio 
members are entitled to vote on all matters brought before the Council for approval. Provided 
that the presence of at least three ex-officio members is required to have a valid action. 
The Core Agencies shall determine the Chair and Vice-Chair of the GC from among themselves 
for a term of three (3) years. 
SECTION I. Functions of the Governing Council. The GC shall: 
set policies and directions for the P-S; 
review periodically and approve the long-term plans and programs of the PNHRS; 
evaluate and approve the National Health Research Agenda developed and integrated by the 
Core Agencies and identify areas that will serve as the foci of the National Health Research 
Agenda; 
establish the criteria for stakeholders that can apply for grants for the approval of projects 
and programs. These criteria shall be reflected in the implementing rules and regulation of 
this Act; 
approve investments of the PNHRF created under Section 9 of this Act; 
review grants and/or donations to any government agency relative to health research from 
domestic and international funding agencies. It shall assess the terms and benefits from the 
grants/donations and evaluate the relevance of the research in relation to the national unified 
health research agenda; and 
review and approve research projects or programs that have an estimated cost of two (2) 
million pesos and above. 
SECTION 8. The Executive Director and Secretariat. The GC shall appoint the Executive 
Director who shall come from the Core Agencies and who shall be responsible for, among 
others, the coordination and oversight functions of the System. The ED shall be assisted by a 
secretariat from the DOST-PCHRD staff. 
Upon the effectivity of this Act, the incumbent Executive Director of DOST-PCHRD shall 
continue to serve as the ED for three (3) years without prejudice to reappointment. 
SECTION 9. Creation of the Philippine National Health Research System Committees. The 
GC shall create the following committees composed of representatives from the Core Agencies 
and various stakeholders: 
Committee on Research Management - provide technical and policy advice in setting health 
research agenda, formulating policies and addressing matters related to priority setting, 
proposal review and fundingfund management, and project monitoring and evaluation; 
Committee on Ethics - ensure adherence to universal ethical principles and values on the 
dignity of health research participants; 
Committee on Capacity Building - provide technical and policy advice in the development 
and continuous supply of quality human and institutional resources for health research; 
Committee on Structure, Organization, Monitoring and Evaluation - provide technical and 
policy advice to ensure the stewardship and leadership of the PNHRS espoused health 
research that connects to health needs and outcomes, policy and action; 
Committee on Research Utilization - provide technical and policy advice to develop and 
sustain knowledge management systems, communication and advocacy strategies to connect 
research to health needs and outcomes, policy and action; 
Committee on Resource Mobilization - provide technical and policy advicehpport to secure 
sustainable financing, and ensure equity, effective and efficient use of resources for health 
research and development. 
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The Governing Council may create other committees as the need arises. 
Title JI 
Philippine National Health Research Fund 
SECTION 10. Creation and Nature of the Philippine National Health Research Fund 
A 
Special Research Fund hereinafter called the Philippine National Health Research Fund 
(PNHRF) is hereby created under the management of the GC through the secretariat. 
The PNHRF shall not be used for purposes other than what are provided in Section 11 of this 
Act. Moreover, no portion of the funds of the PNHRS or income thereof shall accrue to the 
General Fund of the national government and its political subdivisions, instrumentalities and 
other agencies including government-owned and controlled corporations except as may be 
allowed under this Act. 
SECTION 11. Uses of PNHRF. The main objective of this fund is to provide sustained 
financial support for knowledge management and its translation into efficient and effective 
health policies and service delivery; a strengthened health care system; and improved health for 
all Filipinos. It shall ensure that the Government invests in health research as part of its 
commitment to secure the well-being of its citizens. Specifically, it shall be utilized for any or all 
of, but not limited to. the following: 
support qual& ethical research and the application of ethical principles to health research 
and development activities; 
create a robust health research environment in the Philippines that will attract, develop 
and keep excellent researchers and provide them with the opportunity to contribute to the 
improvement of people's health in the country and the world; 
fulfill an integrated health research agenda across disciplines, sectors and regions that 
reflect the emerging health needs of Filipinos and the evolution of the health system, and 
supports health policy decision-making; 
ensure the promotion research undertakings that meet the highest international scientific 
standards of excellence and ethics and that pertain to all aspects of health, including bio- 
medical research, clinical research and research on health systems, health services, the 
health of populations, societal and cultural dimensions of health and environmental 
influences on health; 
address emerging health opportunities, threats and challenges (e.g. avian flu, SARS) and 
accelerate the discovery of cures and treatments and improvements to health care, 
prevention and wellness strategies; 
promote the dissemination of research-based knowledge, technologies, and innovations 
and the application of health research to improve the health of Filipinos and, provide 
support for the participation of Filipino health scientists in international collaboration and 
partnerships in health research. 
SECTION 12. Sources of PNHRF and Method of Collection. 
1) The PNHRF shall be sourced out from the following agencies, but not limited to: 
Not less than one percent (1%) of the annual revenue collected by the Land 
Transportation Office (LTO) from drivers license issuances; 
Five percent (5%) of the annual revenue collected by the National Statistics Office @SO) 
from birth certificate issuances; 
Fifteen percent (15%) of the total fees collected by the Professional Regulation 
Commission (PRC) from the issuance and renewal of licenses to the health professionals 
such as but not limited to physicians, nurses, dentists, pharmacists, medical technologists, 
midwives, dieticians, and veterinarians; 
One percent (1%) of the total revenues collected by the Department of Environment and 
Natural Resources (DENR) 
from charges, fines and penalties imposed under the Clean 
Air Act and the Clear Water Act; 
Any other appropriations from the General Appropriations Act; and 
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f) Donations and grants from domestic and international sources duly acceptedapproved by 
the GC which do not constitute a breach of the Philippine laws and recognized 
international treaties. 
2) All agencies mentioned in the preceding paragraph are hereby directed to automatically remit 
semi-annually the amount prescribed by this Act to the specified account established by the 
GC on or before the 31“ day of January and July of each year. This does not preclude the 
agencies from making advance contributions provided they fall within the specifications of 
this act. 
3) The rates indicated in Paragraph 1 hereof shall be reviewed and updated every five (5) years. 
SECTION 13. Management and Allocation of Fund. 
1) The GC through the secretariat shall manage the funds in accordance with generally 
accepted auditing standards; 
2) The GC shall allocate two percent (2%) Erom the fund for research operational expenses and 
of such amount not more than twenty percent (20%) shall be allocated for administrative 
expenditures. 
3) The GC is authorized to invest the PNHRF that was not allocatedobligated during the 
current year in any of the following: 
a) Interest-bearing bonds, securities, and other evidence of indebtedness of the Republic of 
the Philippines and other evidences to which full faith and credit and unconditional 
guarantee of the Republic of the Philippines are pledged. 
b) In interest-bearing deposits and loans to or securities in any domestic bank doing 
business in the Philippines: Provided, that in the case of such deposits, this shall not 
exceed at any time the unimpaired capital and surplus or total private deposits of the 
depository bank, whichever is smaller. Provided, further, that said bank shall first have 
been designated as depository for this purpose by the Monetary Board of the Bangko 
Senhrrl ng Pilipinas (BSP); and 
c) In preferred stocks of any solvent corporation or institution created or existing under the 
laws of the Philippines: Provided, that the issuing, assuming, or guaranteeing entity or its 
predecessor has paid regular dividends upon its preferred or guaranteed stocks for a 
period of at least three (3) years immediately preceding the date of investment in such 
preferred or guaranteed stocks. Provided further, that if the stocks are guaranteed the 
amount of stocks so guaranteed is not the excess of fifty percent (50%) of the amount of 
the preferred common stocks as the case may be of the issuing corporation. Provided 
furthermore, that if the corporation or institution has not paid dividends upon its preferred 
stocks, the corporation or institution has sufticient retained earnings to declare dividends 
for at least two years on such preferred stocks and in common stocks options. 
The Board can also invest in common stocks of any solvent corporation or institution created or 
existing, under Philippine laws, in the stock exchange with proven track record of profitability 
and payment of dividends over the last three (3) years or in the common stocks of a newly 
organized corporation about to be listed in the Philippine stock exchange. Provided, finally, that 
such duly organized corporation shall have been rated “A”, double “A’s” or triple “A’s” by 
authorized accredited domestic rating agencies or in mutual funds including allied investments. 
4) The GC shall allocate not less than sixty percent (60%) but not more than seventy five percent 
(75%) to priority research programs and agenda as defined by the National Unified Health 
Research Agenda and to UPM-NIH, as lead implementing agency for health research, not 
less than twenty five percent (25%) but not more than forty percent (40%) of the funds. 
5) The GC, through the Secretariat shall submit periodic reports to agencies mentioned in 
Section 11 paragraph 1 on the use of the PNHRF. 
SECTION 14. Creation of the Invesrnent Advisory Group. 
1) An Investment Advisory Group is hereby established to make recommendations to the GC on 
matters of investments from the PNHRF. The group shall recommend the method of 
investment that will yield the highest return for the PNHRF. 
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2) The advisory group shall be composed of the Representatives of the Core Agencies to be 
appointed by their respective heads and any three of the following, for a term of three (3) 
years: 
a) An economist or market analyst with extensive knowledge of the financial and stock 
b) A representative from the BSP; 
c) A member from the Philippine Bar; 
d) A representative from the research community. 
markets; 
Provided that the representative from the BSP shall always be a member of the Advisory Group. 
Title III 
Final Provisions 
SECTION 15. 
Monitoring, Evaluation, Accountabilities, and Annual Report. Regular 
monitoring and evaluation mechanism shall be done by the GC through the secretariat to 
determine the accountabilities of the System to the Contributing Agencies. The specifiddetails 
of monitoring, evaluation, accountabilities and annual reporting shall be provided for in the 
Implementing Rules and Regulations of this Act. 
SECTION 16. Implementing Rules and Regulafion. The Core Agencies shall promulgate the 
implementing rules and regulations of this Act within a year after the effectivity hereof. 
SECTION 17. Separabiliy Clause. If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 18. Repealing Clause. Any law, presidential decree or issuance, executive order, 
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with, thc 
provisions of this Act is hereby repealed, modified or amended accordingly. 
SECTION 19. Eflectiviy Clause. 
publication in at least two (2) newspapers of general circulation. 
This Act shall take effect fifteen (15) days after its 
Approved, 
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