FIFTHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENA~r. 
S.B. No. 
~bv6 
) 
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Introduced by Senator Frallklin M. Drilon 
EXPLANATORY NOTE 
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The Constitution explicitly provides that the State shall protect and promote the right 
to health of the people and instill health consciousness among them. This bill seeks to ! 
provide an additional levy on real property by amElnding Section 
235 of RA N0'1 
7160, otherwise known as the "Local Government C'ode of 1991" to create a special health 
fund. The special health fund should be allocated for the purpose of maintenance of public 
hospitals, construction and repair of health centers and facilities, purchase of medicine and 
for other purposes. 
Ensuring that funds will be rnade available for its purpose will help in improving the 
health care services in the local government units which at present is inadequate. 
Government health facilities have acquired incre'lsing notoriety for lack of equipment, 
medicines and staff. 
This bill attempts to respond to an urgent need of ensuring better health services 
delivery to our people. 
. 
In view of the foregoing, the passage of this bill is earnestly sought. 


FIFTHTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SEN~rS5'6 
S.B. No. _~=-=-=-_ 
Introduced by Senator Fran~lin M. Drilon 
AN ACT PROVIDING FOR ADDITIONAL LEVY ON REAL PROPERTY FOR TH.E SPECIAL HEALTH FUND, AND 
AMENDING SECTION 235 OF REPUBLIC ACT NO. 7160,'OTHERWISE KNOWN AS THE "LOCAL 
GOVERNMENT CODE OF 1991", AND FOR OTHER PURPOSES 
8e it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
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Section 1. Short Title. This Act shall be known as the "Special Health Fund Act of 2011" 
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Section 2. Declaration of Policy. In pursuance of the policy of the State to protect and promote the 
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right to health of the people, a Special Health Fund is hereby created to promote and implement the 
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delivery of health services and facilities thru the prudent and judicious utilization of the said funds, thru 
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the Local Health Board. 
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Section 3. Section 235 of Republic Act No. 7160 is hereby amended and shall read as follows: 
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Section 235. Additional levy on real property 'tor the 
Special 
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Education Fund AND SPECIAL HEALTH FUND,(SEF). - Province or city, 
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or a municipality within the Metropolitan Manila Area, may levy and 
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collect an annual tax of TWO PERCENT (2%) on the assessed value of 
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real property which shall be in addition to the basic real property 
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tax. 
The proceeds thereof shall exclusively accrue to the Special 
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Education Fund (SEF) AND SPECIAL HEALTH FUND (SHF), EACH 
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AMOUNTING TO THE EQUIVALENT ONE PERCENT (1%) OF THE 
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AFORECITED BASIC REAL PROPERTY TAX. ALLOCATION AND 
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APPLICATION OF PROCEEDS SHALL INCLUD~ THE FOLLOWING: A) 


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Section 4. 
THE PROCEEDS OF THE ADDITIONAL ONE PERCENT 
(1%) 
REAL 
PROPERTY TAX ACCRUING TO SPECIAL HE~LTH FUND 
SHALL 
BE 
AUTOMATICALLY RELEASED TO THE LOCAL HEALTH 
BOARDS. 
B) 
IN CASE OF PROVINCES, THE PROCEEDS OF THE SPECIAL HEALTH 
FUND SHALL BE DIVIDED EQUAllY BETWEEN THE PROVINCIAL AND 
MUNICIPAL HEALTH BOARDS. C) SAID PROCEEDS SHALL BE 
ALLOCATED AS DETERMINED AND APPROVED BY THE LOCAL 
HEALTH BOARDS CONCERNED ONLY FOR THE FOLLOWING 
PURPOSES: 
1. OPERATION AND MAINTENANCE OF PUBLIC HOSPITALS, RURAL HEALTH CENTERS; 
2. CONSTRUCTION AND REPAIR OF HEALTH CENTERS, HEALTH FACILITIES AND 
EQUIPMENT; 
3. MEDICAL AND HEALTH RESEARCH; 
4. PURCHASE OF MEDICINES, IF WARRANTED; AND 
5. TRAINING OF LOCAL PUBLIC HEALTH OFFICERS. 
Separability Clause. If any provision of this Act is declared unconstitutional or invalid, such 
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sections or parts not affected thereby shall remain valid and subsisting. 
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Section 5. Repealing Clause. All decrees, executive orders, proclamations, rules and regulations, or 
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parts thereof, inconsistent herewith are hereby repealed or modified accordingly. 
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Section 6. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete publication in 
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at least two (2) national newspapers of general circulation. 
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Approved,