FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
Introduced by Senator Villar 
EXPLANATORY NOTE 
The 1987 Constitution recognizes the importance of both the educational 
institution and the health sector for the welfare of the Filipino people. 
That is why, consistent herewith, is a policy that seeks to endeavor to 
make education, essential goods, health and other social services available at an 
affordable cost. 
Through this policy established beforehand, priority to education and 
health has been enshrined in the Constitution to serve as a reminder that the 
value of the children are recognized and that the health of the citizenry is not to 
be compromised. 
In connection with these goals of the Constitution, it is best to use the 
power of taxation to fund these objectives, through the funding coming from 
collections made in pursuance of the Value-Added Tax System. 
This legislation will allow for transparency in the question of where the 
payments to the Value-Added Taxes goes to, and a much better alternative than 
giving of dole-outs to the marginalized sectors of the Philippines. 
MANNYVI LAR ?. 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
S E N A T E  
S. 
8. 2508 
Introduced by Senator Villar 
AN ACT 
TO REVITALIZE THE PUBLIC EDUCATION AND HEALTH CARE 
INSTITUTIONS BY CREATING THE WELFARE OF THE PUBLIC EDUCATION 
AND HEALTH CARE CORPORATION AND PROVIDING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
SECTION 1. Title. - This Act shall be known as the "Welfare of the Public 
Education and Health Care Act of 2008." 
SECTION 2. Declaration of Policies. - It is declared as the policy of the 
State to give priority to education, accelerate social progress, and protect and 
promote the right of all citizens to quality education at all levels and shall take 
appropriate steps to make such education accessible to all. Accessibility of 
education to all can be equated with providing of school buildings appropriate for 
the needs of the student, nutrition that will cater to their daily needs, and provide 
the teachers with a fair wage for their daily work. 
It is also the policy of the State to adopt an integrated and comprehensive 
approach to health development which shall endeavor to make essential goods, 
health and other social services available to all the people at affordable cost. It 
shall also endeavor to provide free medical care to paupers. Availability of 
medical services to the citizenry can likewise be equated with the presence of 
hospital buildings with which to house patients and the modernization of the 
equipment with which to aid the patient and keep up with the needs of the times. 
SECTION 3. Welfare Corporation. - There is hereby created a body 
corporate to be known as the Welfare Corporation (hereinafter referred to as the 
"Corporation") to carry out the purposes of this Act, which shall be vested with 
both the express and implied powers of a corporation. The Corporation shall be 
an independent government instrumentality with its own charter. It shall establish 
its principal office in Metro Manila. 
Sec. 4. Powers and Functions of the Welfare Corporation. - The 
Corporation shall have the following powers and functions: 
(a) To administer the Welfare Program; 
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(b) To hold and administer the Welfare Fund created under Section 5, 
according to the purposes specified under Section 6 of this Act; 
(c) To implement all policies and programs of the Department of 
Education 
and 
Department 
of 
Health 
necessary 
for 
the 
accomplishment of the objectives of this Act; 
(d) To adopt, prepare and implement a comprehensive and detailed six- 
year development plan during its first fiscal year of operation, 
containing an assessment of the existing needs of public elementary 
and high schools and embodying a list of projects, including but not 
limited to those provided in the Medium-Term Philippine Development 
Plan (MTPDP), for the rehabilitation and enhancement of the national 
educational and school health system; Provided, That on its third year 
and every three years thereafter, the Board of Directors of the 
Corporation created under Section 8 of this Act shall review existing 
development plan taking into consideration the completion, status and 
impact of projects. 
(e) To apply for, receive and accept grants and donations and other 
conveyances by gratuitous title, including funds, materials, equipment 
and services needed to accomplish its objectives under this Act; 
(f) To do all such other things and to transact all such business directly or 
indirectly necessary, incidental or conducive to the attainment of its 
purpose; 
(9) To exercise the power of eminent domain; and 
(h) Generally, to exercise all powers of a corporation under the 
Corporation Law. 
Sec. 5. Welfare Fund. -- For purposes of ‘this Act, the Welfare Program 
Fund is hereby established, to consist of ten percent (10%) of the revenue 
assessed and collected from the Value-Added Tax System. All proceeds 
accruing to the Fund shall be earmarked solely and used exclusively to finance 
the priority programs stated under Section 6 herein. 
Sec. 6. Priority Uses of Fund. - The Fund shall be used to finance 
programs aimed at rehabilitating and modernizing educational and health 
infrastructure, raising the quality of instruction, and strengthening delivery of 
basic services in public elementary and high schools nationwide. The programs, 
including but not limited to the following, shall be implemented in phases to 
ensure continuity and sustainability, according to the following schedule of 
priority: 
. 
As to the education sector: 
Upgrading of school buildings, classrooms and facilities, and 
construction of new ones should the need for the same arise. 
The establishment or upgrading of libraries by providing the same 
with computers with internet access, purchase of books from 
competent authors, science laboratories with modern equipment, all 
aimed at improving the competency of the students. 
Increasing the remuneration of teachers, and identifying the schools 
where additional teachers are required and in connection therewith, 
hire, train said teachers. 
Upgrading of school clinics and establishing or construction of such 
clinics should the need arise, to be provided with at least one (1) 
registered nurse. 
Regular vaccination and dental checkup programs; 
Upgrading of canteens and providing for adequate meals for public 
elementary schools consisting of three (3) meals a day. 


As to the Medical Sector: 
(a) Upgrading of the condition of hospitals, and construction of new 
buildings where the need arises, with the aim of increasing the 
number of hospital beds available; 
(b) The purchase of medical equipment to improve the efficiency of 
delivering basic services to the general public especially to pauper 
patients; 
(c) Increasing the remuneration ai medical personnel, and identifying the 
hospitals where an increase in medical personnel is needed and in 
connection therewith, hire and train said medical personnel; 
Sec. 7. Capitalization. - The Corporation shall have an authorized 
capitalization of Twenty Million Pesos (P20,000,000.00) s its initial organization 
andlor operational expenses; Provided, That such amount as may be necessary 
for the Corporation’s administration and operation shall be set aside from the 
Fund; Provided further, That such amount shall no exceed one percent (I”/.) 
of 
the Fund at any time. 
Sec. 8. Board of Directors. - Within 30 days from the approval of this 
Act, the following shall constitute a Board of Directors for the Corporation: 
(a) The Secretary of the Department of Education; 
(b) The Secretary of the Department of Health; 
(c) Six (6) representatives from State Universities, two each from Luzon, 
(d) Three (3) representatives from Government health institutions; 
(e) Two (2) representatives from the private education sector; 
(f) Two (2) representatives from the private health sector. 
Visayas, and Mindanao respectively; 
The Board of Directors shall thereafter convene and elect a Chairperson from 
among the Board of Directors through a vote of majority. 
S ~ G .  
9. Powers and functions of the Board of Directors. - The Board 
of Directors shall be the policy-making body of the Corporation and shall perform 
the following functions: 
(a) Carry out the purposes OPthe Corporalien as embodied in this Act; 
(b) Determine the organizational structure of the Corporation, define the 
duties d responsibilities of all officials and employees and adopt a 
compensation scheme; Provided, That the Corporation shall engage 
the services of urban and regional planners, engineers and 
management experts; 
(c) Adopt an annual budget for and authorize such expenditures by the 
Corporation in the interest of its effective administration and operation, 
in accordance with applicable rules and regulations; and 
(d) Six months from its constitution and every six months thereafter, 
submit a report of the operation f the Corporation to the President of 
the Philippines, President of the Senate, and Speaker of the House of 
Representatives. 
Within 90 days from the promulgation of .this Act, the Corporation shall 
enact its rules of procedure. Members of the Board shall receive a per diem for 
every meeting actually attended subject to the pertinent budgetary laws, rules 
and regulations on compensation, honoraria and allowances; Provided, hat he 
per diem collected per month does not exceed the equivalent of four (4) 
meetings 
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See. -lo. Chairperson. - The Chairperson appointed by the Board shall 
(a) To act as Chair of the Board and Chief Executive Officer of the 
Corporation; 
(b) To execute, administer and implement the policies and measures 
approved by the Board; 
(c) To direct, supervise the operations and administration of the 
Corporation; 
(d) To represent the Corporation in all dealings with offices, agencies and 
instrumentalities of the government and with all persons and entities, 
public or private, domestic or foreign; 
(e) To direct and supervise the preparation of the agenda for the meeting 
of the Board and to submit for the consideration of the Board such 
policies and measures as necessary to carry out the purpose and 
objectives of this Act; and 
(f) To exercise such .other powers and functions provided in the by-laws 
and as may be vested upon the office by the Board. 
The compensation of the Chairperson shall be determined by the Board 
have the following duties and responsibilities: 
subject to the approval by the Secretary of Budget and Management. 
The Chairperson shall be appointed for a period of three (3) years, 
renewable for another three (3) years upon a two-thirds (213) vote of the Board of 
Directors. 
Sec. 11. Education and Health Modernization and Monitoring 
Department. - Among the staff departments that will be established by the 
Corporation shall be the Education and Health Monitoring Department which 
shall regularly perform the following duties and functions, in coordination with the 
appropriate provincial State Universities, Colleges, and medical institutions: 
(a) conduct on-site inspections on the projects to ensure the project's 
adequacy and responsiveness to existing sector needs; 
(b) review and evaluation of the impact of the programs on the access to 
and quality of facilities for public elementary and high schools, and 
public health institutions; and 
An annual report on the results of these inspections, review and 
evaluation shall be submitted to the Board for its policy formulation. 
Sec. 12. Audit. -The Commission on Audit shall appoint a representative 
who shall be the full time auditor of the Corporation, and such personnel as may 
be necessary to assist said representative in the performance of duty. 
Sec. 13. Report to Congress. - The Corporation shall submit to the 
Department of Education and to Congress a detailed quarterly report on the 
funds allocated, indicating the amount released, obligated and disbursed under 
this Act, including but not limited to funds for the construction or repair and 
reconstruction of infrastructure projects, the list of contractors and projects being 
Financed, and ,the accomplishments for the expended appropriation, including the 
percentage of completion. 
Sec. 14. Congressional Oversight Committee. - There is hereby 
created a Congressional Oversight Committee, which shall be composed of three 
representatives each from the Senate and the House of Representatives, to be 
appointed by he Senate, President and the Speaker of .the House of 
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Representatives, to monitor the implementation of this Act. The Committee shall 
conduct an annual review of this Act in aid of legislation. 
Sec. 15. Injunction and Restraining Order. - Projects under the Welfare 
Fund are urgent and necessary. Their implementation shall not be restrained or 
enjoined except by an order issued by the Supreme Court of the Philippines. 
Sec. 16. Separability Clause. - If any provision of this Act or any part 
hereof be declared unconstitutional or invalid the remainder of this Act or any 
provision not affected thereby shall remain in force and effect. 
Sec. ‘?7. Repealing Clause. - All laws, orders, proclamations, rules and 
regulations, or part thereof, which are inconsistent with any provision of this Act 
are hereby repealed or modified accordingly. 
Sec. 18. Effectivity. - This Act shall take effect after fifteen (15) days 
following its publication in the Official Gazette or in at least two newspapers of 
general circulation. 
Approved.