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NINETEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES \
First Regular Session y

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

2456

House Bill'No.
EXPLANATORY NOTE

This bill was filed during the 18" Congress and was approved by the House of
Representatives.

The coronavirus disease (COVID-19) is an infectious disease caused by a new strain of
coronavirus. This new virus was unknown before the outbreak began in Wuhan, China, in
December 2019.

On January 30, 2020, the Department of Health (DOH) reported the first case of COVID-
19 in the country with a 38-year-old female Chinese national. Then on March 7, 2020, the first
local transmission of COVID-19 was confirmed.

The COVID-19 pandemic highlighted the weaknesses of the country’s health system and
the bureaucracy involved in making decisions to address health scares and pandemics.

The outbreak presented many concerns, particularly on effective clinical and public health
management specially on novel viruses that cross the species barrier. This is due to very few
studies and limited information on viral pathogenesis; risk factors for infection; the natural history
Of disease including clinical presentation and outcomes; prognostic factors for severe illness; the
period of infectivity; modes and extent of virus inter-human transmission; effective preventive
measures; and public health response and containment interventions.

While there are already vaccines for COVID-19, it cannot be argued that we were not
ready for COVID-19. The whole world was not ready. Aside from COVID-19, there are many other
viruses emerging and currently affecting the world

These are issues that can only be addressed using science and technology, specifically
through research and development (R&D). It is therefore imperative that we establish a research
Institute that delves into the study of viruses or the field of virology

The country needs diagnostics to detect and limit the spread of the existing viruses;
vaccines to provide long-term protection; treatments to save lives in the shorter-term, and social
science to understand their behavioral and societal implications.

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

RUFUS B. RODRIGUEZ


NINETEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriquez

House Bill No. 245 456

ANACT
ESTABLISHING THE PHILIPPINE VIROLOGY SCIENCE AND TECHNOLOGY INSTITUTE
AND APPROPRIATING FUNDS THEREFOR

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

SECTION 4. Short Title. - This Act shall be known as the “Virology Institute of the Philippines
(VIP) Act.”

SEC. 2. Declaration of Policy. - It is the policy of the State to protect and promote the right to
health of the people and instill health consciousness among them. The State recognizes that
science and technology is essential for national development and progress.

To this end, the State shall formulate and implement policies that shall address current
health issues, such as the quality and adequacy of health and medical human resources, health
institutions, and delivery of health services, and shall give priority to research, the development
and promotion of innovations in both technology and services, the use of safe and indigenous
health-promoting practices, and their appropriate utilization by the health sector.

In this regard, the State shall prioritize the establishment of an institute that will conduct
in-depth studies on viruses and their potential disease-causing agents that affect people, plants,
and animals, in order to provide the scientific bases for the treatment of viral diseases, and for
the formulation of policies that shall prevent the transmission of these diseases within the
community and national context.

SEC. 3, Objectives. - This Act seeks to establish a virology institute that shall focus on the
following key development areas for virology science and technology applications in plants,
animals, and humans:

a) Research on viruses using a modem approach such as molecular biology and its
application or biotechnology;

b) Development of diagnostics, vaccines, and therapeutics;

c) International cooperation and network of databases of virus infections;

d) Operation of a virus gene bank, virus genome laboratory, and virus reference laboratory
to focus on viruses circulating in the Philippines for disease prevention and
epidemiological studies; and,

Operation of a virus high containment laboratory dedicated to the study of highly
infectious and highly pathogenic virus.


SEC. 4. Definition of Terms. - As used in this Act:

a) Bacteriophage refers to any group of viruses that infect specific bacteria, usually
causing their disintegration or dissolution;

b) Biosafety refers to a condition in which the probability of harm, injury, and damage
resulting from the intentional and unintentional introduction or use of a regulated article
is within acceptable and manageable levels;

©) Biosecurity refers to the strategic and integrated approach to analyzing and managing
relevant risks to plant, animal and human life, and health and associated risks for the
environment. It is based on recognition of the critical linkages between sectors and the
potential for hazards to move within and between sectors, with system-wide
consequences;

d) Diagnostics refer to methods, tests, techniques, and tools in viral diagnosis for plants,
animals and humans;

e) Therapeutics refer to anti-viral, bacteriophages, nanotechnology treatment approach,
nucleic acid-based treatment, remedial agents, drugs for the treatment of viral diseases
and infections of plants, animals and humans;

f) Vaccine refers to a product that induces or stimulates active acquired immunity by
producing antibodies to a specific infectious agent. It helps the body's immune system
to recognize and fight pathogens like viruses or bacteria; and

9) Virology refers to the scientific discipline concemed with the study of the biology of
viruses and viral diseases of plant, animal, and human medical importance and
pandemic potential, including the distribution, pathogenicity, viral cytopathicity,
biochemistry, physiology, molecular biology, biotechnology, ecology, tropism, spillover
or interspecies transmission, evolution, and clinical aspects of viruses.

SEC. 5. Creation of the Virology Science and Technology Institute of the Philippines. - The
Virology Science and Technology institute of the Philippines (VIP) is hereby created and shall be
an attached agency under the Department of Science and Technology (DOST) for purposes of
policy and program coordination to ensure alignment in national policies and priorities.

The VIP shall serve as the premier research and development institute in the field of
virology, encompassing all kinds of viruses and viral diseases in plants, animals and humans. It
shall be a venue for scientists, research institutes and other organizations in the Philippines and
abroad, to work collaboratively to study viruses of agricultural, industrial, clinical, and
environmental importance.

SEC. 6. Mandate. - The VIP shall implement policies, plans, programs, and projects for the
development of virology science and technology in the country and the promotion of scientific and

ical activities for both the public and private sectors. It shall ensure that the results of
ies are properly applied towards self-reliance and utilized to accelerate economic and
social development towards the protection of the citizens and resources.

SEC. 7. Powers, Functions, and Duties. - To accomplish its mandate, the VIP shall have the
following powers, functions, and duties:


a)

b)

°)

d)

e)

k)

SEC. 8.

Serve as the lead convener for the formulation of the National Virology Research
Agenda, in consultation with all concemed stakeholders, that will encompass
researches involving viruses of plant, animal and humans;

Undertake scientific and technological research and development in the field of
virology;
Conduct product research and development in the areas of diagnostics, therapeutics,
and vaccines in cooperation with the private sector and concerned government
agencies;

Promote and undertake the transfer of the results of scientific research and
development in collaboration with government agencies, industry, and the academe;

Promote, advocate and oversee virology research ethics, biosafety, and biosecurity;

Develop and maintain an information system on virology science and technology for
use by both the public and private sectors;

Develop and implement, together with other entities concerned, programs for
strengthening scientific and technological capabilities in virology and relevant
disciplines through human resource development, infrastructure, and institution
building;

Undertake policy research, technology assessment, and other related studies on
virology;

Provide laboratory and technical services on virology;
Promote and advocate the national programs on virology science and technology; and,
Establish linkages with local and international partners.

Organizational Structure. - The VIP shall be headed by a Director and two (2) Deputy

Directors for Research and Development, and Support, Policy, and Linkages.

The VIP shall be composed of the following divisions:

4
2.
3.

ES

2

Virus Research
Diagnostics and Therapeutics Research
Vaccines Research

Technical Services and Training

. Policy, Planning, and Linkages

|. Finance and Administration.


The Deputy Director for Research and Development shall oversee the operations of the Virus
Research, Diagnostics and Therapeutics Research, and Vaccines Research Divisions. The
Deputy Director for Support, Policy, and Linkages shall oversee the operations of the Technical
Services and Training, Policy, Planning, and Linkages, and Finance and Administration Divisions.

The VIP shall have technical and administrative support staff and consultants. The
consultants may come from the public and private sectors on a consultancy or contractual basis,
and shall be granted honoraria or allowances in accordance with existing rules and regulations.

Subject to the approval of the Department of Budget and Management (DBM), the VIP
shall determine its organizational structure, create new divisions or units as it may deem
necessary, and appoint its officers and employees.

For this purpose, the VIP shall, in consultation with the DBM, determine the necessary
position qualifications and standards for its personnel following civil service laws, rules, and
regulations.

SEC. 9. Qualifications of the VIP Director and Deputy Directors. - Upon the recommendation
of the Governing Board, the President of the Philippines shall appoint the Director of the VIP who
must possess a bachelor’s degree in the field of microbiology and a postgraduate degree in
virology, and should have at least three (3) years experience in the field of diagnostic virology.
The Director of the VIP shall have the rank of Director IV, Salary Grade (SG)-28, and shall
exercise overall responsibility over the activities of the VIP, including the supervision over VIP
staff. The Director of the VIP shall report to the President of the Republic of the Philippines and
the Secretary of the Department of Science and Technology the results of the various diagnostic
assays and research studies undertaken by the VIP.

Each of the Deputy Directors of the VIP shall have a rank of Director II, SG-27. Each must
possess a Bachelor's Degree in Microbiology or in a similar field and at least a Master's Degree
in Virology.

SEC. 10. The Governing Board. - The Governing Board shall be the policy-making body for
the scientific and technological activities of the VIP, composed of the following:

Chairperson:

a) Secretary of the DOST;

Co-Chairpersons:

b) Secretary of the Department of Health (DOH);

©) Secretary of the Department of Agriculture;

Members:

d) Undersecretary of the Department of Environment and Natural Resources;
e) Undersecretary for Technology for Research and Development of the DOST;

f) Undersecretary of the Department of Foreign Affairs (DFA) for International Economic
Relations;

g) Chairperson of the Commission on Higher Education (CHED);


h) Director of the Research Institute for Tropical Medical Medicine (RITM);

’) Director General of the Food and Drug Administration (FDA);

i) Director of VIP;

k) Executive Director of University of the Philippines-National Institute of Health;
1) Representative from the National Academy of Science and Technology;

m) Representative from the National Research Council of the Philippines; and

n) Three (3) representatives from the private sector appointed by the President of the
Philippines, as nominated by the Governing Board. These representatives shall have
distinguished themselves in the fields of medical virology, genomics, plant virology,
animal virology, epidemiology, genetic engineering and other related disciplines.

The VIP Secretariat shall serve as the Secretariat to the Governing Board.

SEC. 11. Transfer of Units, Offices and Functions. - All offices and units under the DOST
system which functions are related to virology shall be transferred to the VIP.

Alll powers, functions, assets, capital, records, funds, receivables, equipment and facilities
of the DOST units or its division shall be transferred to the VIP. The DOST shall conduct an audit
and inventory of assets, liabilities and human resources of the transferred offices and units under
the DOST system to the VIP. All transferred and new employees under the DOST System shall
be subject to the qualification standards provided for in the laws, rules and regulations of the Civil
Service Commission.

SEC. 12, Engagement of Balik Scientists and Foreign Experts. -The VIP may engage the
services of Balik Scientists and foreign experts who shall work together with the local scientists
and experts, following the terms of reference and compensation structure in accordance with
Republic Act No. 11035 or the “Balik Scientist Program Act” and other existing laws.

SEC. 13. International Cooperation. - The VIP shall establish strategic partnerships with the
world's leading scientists, virology centers and institutes, and conduct innovative and pioneering
researches that will advance the frontiers of virology in the country. It may enter into a
memorandum of agreement or understanding with international partners, upon the approval of its
Governing Board and in compliance with existing laws, rules, regulations and issuances of the
DFA. The DFA shall provide legal and other forms of assistance to the VIP.

The Regional Office of the World Health Organization (WHO) in the Philippines shall also
be consulted upon approval of the Governing Board of the VIP.

SEC. 14, Interdepartmental Cooperation. - The VIP shall collaborate with the DOH, Department
of Finance, FDA, RITM and other relevant government agencies, in accessing and mobilizing
available information, reports, technical expertise, equipment, materials and supplies as may be
required to implement this Act.

The scientific findings of the VIP shall be integrated in other plans relating to disease
control and prevention and in the plans of the Inter-Agency Task Force on Emerging Infectious
Diseases, as created by Executive Order No. 168 s. 2014, or its successor body, for the
management of public health emergencies relating to infectious diseases.


SEC. 15. Private-Public Partnerships (PPPs). - The Department of Trade and Industry (DTI),
the DOH, Public-Private Partnership Center and the DOST shall collaborate in seeking Private-
Public Partnerships (PPPs) for the development of new industries, products and services where
the VIP shall be the main research and development unit.

The DOST may also request the assistance of other national and local government
agencies in seeking PPPs where the VIP shall be the main research and development unit.

SEC. 16. Promotion of Virology Industry. - The DOST, in partnership with the DTI and the
DOH, shall jointly develop an industry roadmap for products and services that can be created,
improved, or optimized by research from the VIP. As far as practicable, the industry roadmap shall
include the use of local materials in the development of new products. The industry developed or
established resulting from the VIP researches shall be included in the national government's
priority industries for incentives.

SEC. 17. Promotion of Knowledge-transfer and Research in the Academe. - The VIP shall
promote the creation of hubs and programs for virology research and development in the
academe, particularly in state universities and colleges (SUCs). Towards this end, the VIP shall
assist SUCs in the creation of virology courses and programs, open internships and scholarships
for qualified students of higher education institutions (HEIs), and collaborate with HEIs in the
creation of virology research centers.

The CHED shall collaborate with the DOST in the promotion of HEI-VIP partnerships.

SEC. 18. Protection of VIP-developed Intellectual Property. - The Governing Board of the VIP
shall ensure that all technologies developed exclusively by the VIP with full funding from Filipino
tax payers shall be protected by intellectual property laws in accordance with Republic Act No.
10055 or the “Technology Transfer Act of 2009" and other applicable laws. Any patent or property
right award granted to the VIP shall be held by and in the name of the Philippine Government. In
the case of partnerships, where the VIP is a collaborating research partner, the Governing Board
shall ensure that technologies co-developed by the VIP shall also be co-attributed to the Philippine
Government, with the corresponding intellectual protection.

SEC. 19, Procurement of Specialized Materials, Equipment and Services. - The VIP shall
undertake the procurement of specialized materials, equipment, and services to be used by the
VIP in its operation and administration, in the most expeditious manner, and adopt the most
suitable or appropriate method of procurement that it deems fit based on its identified needs and
requirements depending on the existing conditions and requirements that justify the use of a
particular alternative modality provided for by Republic Act No. 9184 or the “Government
Procurement Reform Act’ and its 2016 Revised IRR.

SEC. 20. Official Site of VIP. - A lot with an area equivalent to at least five (5) hectares under
the administration of the Bases Conversion and Development Authority (BCDA) within the New
Clark Economic Zone in Tarlac Province shall be allocated exclusively for the VIP, its research
facilities, and laboratories. The biosafety infrastructure shall be designed based on risk
assessment standards and guidelines of the WHO for handling specific pathogens and the
establishment of virology laboratories in developing countries.

SEC. 21. Entitlement to Magna Carta Benefits. - Qualified employees of the VIP shall be
covered by Republic Act No. 8439, otherwise known as “Magna Carta for Scientists, Engineers,
Researchers and Other Science and Technology Personnel in Government’.


SEC. 22. Virology Research Fund. - All donations, contributions, grants, bequests, or gifts, in
cash or in-kind, received by the VIP from various sources shall be placed into a fund, to be known
as the Virology Research Fund and such donations shall be exempt from donor's tax: Provided,
That, acceptance of grants, bequests, contributions, and donations from foreign governments
shall be subject to the approval of the President of the Philippines, upon the recommendation of
the Secretary of DOST and the Secretary of DFA

SEC. 23. Authority to Solicit, Negotiate, and Receive Donations, Grants, Gifts, Legacies,
Endowments, and Contributions. ~ The VIP may solicit, negotiate with, and receive from any
Public or private domestic or foreign sources legacies, gifts, donations, grants, endowments,
contributions or other transfers of ownership and/or possession of real or personal properties of
all kinds in favor and for the benefit of the VIP, which shall all be part of the special account in the
general fund.

SEC. 24. Tax Exemptions. — Donations, grants, gifts, endowments, legacies, and contributions
used actually, directly and exclusively for the purpose of the VIP shall be exempt from donor's tax
and the same shall be considered as allowable deduction from gross income for purposes of
computing the taxable income of the donor, in accordance with Sec. 34 (H)(2)(a) of the National
Internal Revenue Code of 1997, as amended. Likewise, such other transfers of ownership and/or
possession of real or personal properties of all kinds shall be exempt from all taxes.

SEC. 25. Annual Report. - The VIP shall submit its annual report to the President and to the
Committees on Science and Technology in both Houses of Congress, not later than the 30th of
March of every year following the effectivity of this Act. The annual report shall provide a full and
detailed account of the status of the implementation of this Act and policy recommendations.

SEC. 26. Joint Congressional Oversight Committee. - There shall be a Joint Congressional
Oversight Committee on the implementation of this Act, which shall be jointly chaired by the
Chairpersons of the Committees on Science and Technology of the Senate and House of
Representatives. It shall be composed of the Chairpersons of the Senate Committees on Health
and Demography, and Agriculture, Food and Agrarian Reform, the Chairpersons of the
Committees on Health and Agriculture and Food of the House of Representatives, and two (2)
Members from each House representing the minority who shall be appointed by the Senate
President and the Speaker of the House of Representatives.

‘SEC. 27. Appropriations. - The initial amount for the implementation of this Act shall be charged
against the current year's appropriations of the DOST. Thereafter, the funding of which shall be
included in the annual General Appropriations Act.

SEC. 28. Transitory Provisions. -

a. The functions and assets of the DOST units enumerated herein shall be transferred to
the VIP within three (3) years without need of conveyance and transfer of assignment

b. To the greatest extent possible and in accordance with existing laws, all employees of
the affected offices, agencies and units shall be absorbed by the VIP. Personnel hired
on a permanent basis and with appointments attested by the CSC who may be affected
by the transition of DOST units to VIP, or who will not be absorbed in the new positions
of the new staffing pattern of the different offices in the VIP, shall have the option to:


1. Be transferred to other units or offices within the DOST in accordance with civil
service law, rules and regulations; or,

2. Avail of the applicable retirement benefits and separation incentives as provided
under R.A. No. 6656 and other relevant laws.

Incumbent DOST officials and employees may be considered to assume positions in
the VIP, subject to competency evaluation and CSC regulations.

|. Research grants acquired during the transition of DOST transferred units to VIP shall
be utilized solely for the grants’ intended purposes for each of the affected units or
offices.

. Existing contracts and agreements entered into by the affected offices with third parties
prior to the enactment of this Act shall remain valid.

SEC. 29. Implementing Rules and Regulations. - The DOST Secretary shall, in consultation
with DBM, DOH, Civil Service Commission, and other relevant government agencies, promulgate
the necessary rules and regulations within one hundred twenty (120) days from the effectivity of
this Act.

SEC. 30. Separability Clause. - If any portion or provision of this Act is declared invalid or
unconstitutional, other provisions hereof shall remain in full force and effect.

SEC. 31, Repealing Clause. - All laws, decrees, orders, rules, and regulations or other issuances
or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 32, Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,