Republic of the Philippines
HOUSE OF REPRESENTATIVES:
Quezon City, Metra Manila

($" RECEIVED
© pet epee 2015

SIXTEENTH CONGRESS TIME:

Second Regular Session
House Bill No, 5480 _

Introduced by Magdalo Party-Li
Francisco Ashley L. Acedil

it Representatives
and Gary C. Alejano

EXPLANATORY NOTE

Section 7 Article XVI of the 1987 Philippine Constitution expressly declares that the
State shall provide immediate and adequate care, benefits, and other forms of assistance to war
veterans and veterans of military campaigns, their surviving spouses and orphans. Funds shall be
provided therefor and due consideration shall be given them in disposition of agricultural lands

of the public domain and, in appropriate cases, in the utilization of natural resources,

In obedience to the Constitutional mandate, Congress enacted in 1990 Republic Act 6948
otherwise known as “An Act standardizing and upgrading the benefits for military veterans and
their dependents”. The law mandated the provision of certain benefits to veterans and their
eligible dependents such as the Old Age Pension, Disability Pension, Death Pension, Educational
benefits, Burial assistance, and the provision of hospitalization, medical care and treatment
through the Veterans Memorial Medical Center (VMMC).

Given this herculean task to provide hospitalization and medical care and treatment, the
VMMC has to be given a sustained and ample financial support to allow it to deliver quality
service to our nation’s defenders and their eligible dependents. Our government must ensure that
VMMC has the needed resources especially in these times when the cost of hospitalization and
medicines has risen to heights far beyond the means of most veterans who are suffering from

service connected or aging-related ailments.


On the other hand, as presently provided under Section 22 of Republic Act 3518, it is
mandated that 20% of the net profit of the Philippine Veteran’s Bank after deducting the
guaranteed earnings of the preferred shall be used, among others, for rehabilitation purposes and
for other purposes beneficial to the veterans and their eligible dependents. Since the main
rehabilitation facility for veterans is at the VMMC, it is but fitting that said amount be directly

funnelled to it to ensure fulfilment of its mandate.

Hence, it is the objective of this bill to pool in resources, and consolidate and harmonize
all existing efforts of providing hospitalization, medical care and treatment to veterans and their
eligible dependents through the VMMC pursuant to and consistent with the mandate of Republic
Act 6948 as amended.

It must also be noted that VMMC was established in 1955 in honor of our veterans who
selflessly and valiantly fought for our country: thus, it is but fitting that our government
strengthen the VMMC for it to be able to deliver quality service that our veterans — our nation’s
defenders and their eligible dependents truly deserve.

In view of the foregoing, immediate approval of this bill is earnestly requested.

HONARANCISCO ASHLEY L. ACEDILLO . GARY £. ALEJANO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
‘Second Regular Session

House Bill No. 5480

Introduced by Magdalo Party-List Representatives
Francisco Ashley L. Acedillo and Gary C. Alejano

AN ACT
AMENDING REPBULIC ACT NO, 3518 OTHERWISE KNOWN AS “AN ACT
CREATING THE PHILIPPINE VETERANS’ BANK, AND FOR OTHER PURPOSE,

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION I. Section 23 of Republic Act No. 3518 is repealed and Section 22 of
Republic Act No. 3518 is hereby amended to read as follows:

“Section 22. Allocation of Net Profits. At the close of each calendar, the Bank shall
determine the net result of its operations, in the calculation of which, adequate allowances shall

be made for probable losses, and the net profit arrived thereat shall be distributed as follows:

a) Twenty (20%) percent of such net profit shall accrue to the reserve account: Provided,
that should the accumulated reserves equal to or in excess of the authorized capital of
the Bank, the twenty (20%) percent herein authorized to be accumulated shall be

distributed under the subsection immediately following;

b

From the remaining eighty (80%) percent of the profit shall be deducted the
guaranteed eaming of the preferred shares of stock owned by individual veterans,
their widows, orphans or compulsory heirs: Provided, the share in the net profits
corresponding to the Republic of the Philippines shall be first applied in payment of
its capital stock subscription, until said shares shall have been fully paid. Thereafter,
twenty percentum of the net profits after deducting the guaranteed earnings of the
preferred shares shall be paid in cash of the [Board of Trustees as hereinafter
provided in Section 23 hereof for disposition and shall be available for “grants-in-aid”
to veterans, their widows, orphans, or compulsory heirs, for educational, social,
charitable, and rehabilitation purposes, to organization doing service for the cause of
the veterans, and for such other purposes beneficial to the veterans] VETERANS
MEMORIAL MEDICAL CENTER (VMMC) TO GUARANTEE AND

1


10
a

SUPPORT THE IMPLEMENTATION OF THE VETERANS
HOSPITALIZATION PROGRAM AS MANDATED BY REPUBLIC ACT NO.
6948 AS AMENDED.

The remaining profits shall be paid as dividends on common shares led by the

individual veterans as provided in Section 3 of this Act.”

SEC. 2. Repealing Clause ~ All existing laws or parts thereof inconsistent with the

provisions of the Act are hereby repealed or modified accordingly.

SEC. 3. Effectivity Clause ~ This Act take effect upon its approval.

Approved,