Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS “NICK” C. ENCISO VIII 
EXPLANATORY NOTE 
To provide a historical perspective to the Cannabis industry, the following 
backgrounder is herein stated, to wit: 
The Cannabis plant has been cultivated by humans for 6,000 years and 
was even a cash crop in the colonial U.S.  Doctors and pharmacists prescribed 
it as medicine up until 1937. 
According to  Dr. Jenelle Kim, Founder & Chief Formulator of JBK 
Wellness Labs: “It is vital to remember that cannabis is one of the 50 
Fundamental Herbs of Chinese Medicine and dates back 4000 years in 
Asia." 
Even while cannabis was banned, black-listed, and was the subject of 
several “fake news” for 81 years, scientists continued to study its healing 
potential. 
Our current knowledge on its pharmacological and medicinal properties 
is based on studies which have taken place only since the end of the nineteenth 
century. 
The US government granted US$4.5 million over the years to  Dr. 
Raphael Mechoulam, an Israeli organic chemist who is the world’s leading 
authority on the science of Cannabis and how it can heal the body. The US 
funded Dr. Mechoulam’s research at the Hebrew University of Jerusalem as a 
sort of an offshore laboratory to explore what this plant can really do for our 
August 30, 2022
11:26 am
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health. In fact, it was Dr. Mechoulam who discovered the CBD (the medicinal 
compound in the cannabis plant) in the first place.  He was first to investigate 
the medicinal properties of cannabis (hemp and marijuana are species of 
cannabis plants) since the 1960’s. He was the first to isolate the THC 
compound in cannabis (compound that is addictive and causes the “high”) and 
the CBD compound (that is non-addictive and will not cause the “high”; the 
medicinal compound) in the cannabis plant from 1963 to 1964. 
 
Israel is now the Cannabis Research Capital of the World (hemp and 
marijuana are members of the cannabis plant family) due to the work of Dr. 
Raphael Mechoulam who spent his entire career studying the health benefits 
of Cannabis.  Israel is now effectively using Medical Cannabis to treat cancer, 
epilepsy, Parkinson’s disease and many other serious health conditions.  
 
Dr. Raphael Mechoulam has since published more than 280 scientific 
articles exploring how CBD and other medicinal compounds found in the 
cannabis plant called phytocannabinoids work in the human body.  
 
The Philippines is so very far behind many other countries in harnessing the 
healing powers of the medicinal compound in cannabis plants – the CBD 
compound. 
 
The discovery of the Cannabis compounds has led to the further discovery of 
an important neurotransmitter system in the human body called the endocannabinoid 
system. This system is widely distributed in the human brain and in the human body, 
and is considered to be responsible for numerous significant functions. Dr. Raphael 
Mechoulam research shows that Cannabis offers significant health benefits with 
minimal risk due to the human body’s own “endocannabinoid system.” 
 
Aside from the research done by Dr. Raphael Mechoulam in Israel, researchers 
at St. Louis University Medical School in the US also discovered a signaling network 
hidden in the brain—and throughout the entire body—that changed the future of CBD 
in America forever. 
 
The most famous doctors in America are not only talking about the medicinal 
uses of the CBD compound from cannabis plant . . . they are using it themselves. A 
US survey in 2014 found that the majority of US physicians – 56 percent (56%) favor 
nationwide legalization of medical cannabis (CBD), with support being highest 
among oncologists and hematologists. 85% to 95% of Americans are in favor of 
medical cannabis and more than 60% support complete legalization of “medical” 
marijuana (which should be differentiated from the THC compound present in high 
levels in “recreational” marijuana which includes: heroin, LSD and ecstasy). 
 


3
Hereunder are what some famous US doctors have to say about medical 
cannabis: 
According to Dr. Mark Sircus, author of the book “Medical Marijuana”: “The 
pharmaceutical industry has nothing pharmacologically equal to cannabinoids 
(CBD).”  
Dr. Al Sears, a Florida based medical doctor and Founder of the Sears Institute 
for Anti-Aging Medicine, stated that:  “It is a God-given medicine that threatens to 
end all of Big Pharma’s monopolies. Even Ivy League researchers are aware of 
the miracles of hemp (cannabis).” 
Dr. Allan Frankel, a California-based internal medical doctor with 35 years of 
extensive experience and one of the World's leading authorities on Dosed Cannabis 
Medicine says, “As a short-term life-prolonging medicine and a long-term therapy for 
chronic conditions, medical marijuana is a miracle drug that is endorsed by 
countless doctors and nurses, as well as the patients whose lives are 
dramatically improved by its use”. 
World-renowned integrative medicine expert Dr. Andrew Weil says: “This 
cannabis plant is so fascinating … and so useful. It is hard to imagine a plant 
that has been more useful to human beings.” 
Dr. Bonni Goldstein, who is one of America’s most experienced physicians 
when it comes to using this cannabis plant, reports: “Used in the right way, [it] is 
extremely powerful.” 
Dr. Fred Pescatore, Founding Director of Medicine 369 in New York City says: 
“I’ve gained a whole new respect for the many things this little plant can do. It’s 
safe. It’s effective. And it’s natural.” 
US Surgeon General Vivek Murthy in a recent CBS TV interview in the US 
acknowledged that “Marijuana may be useful for certain medical conditions”. 
CNN’s chief medical correspondent and neurosurgeon Dr. Sanjay Gupta made 
a highly publicized stand in favor of medical marijuana (CBD) after 5 years of studying 
Cannabis and the production of his two-part TV series entitled: “Weed”. Today he calls 
this plant a “better, safer way” to deal with pain. In fact, he says: “Sometimes, it is 
the only thing that works.” 
The World Health Organization (WHO) published a report confirming “CBD 
exhibits no effects indicative of any abuse or dependence potential … To date, 


4
there is no evidence of public health related problems associated with the use 
of pure CBD.” 
Medical Marijuana (CBD) is now legal in thirty-one (31) States in the USA with 
nine (9) additional States with pending legislation to legalize Medical Marijuana (CBD). 
Status of Legalization of Medical Cannabis in Asia: 
Public opinion has swung in favor of medical cannabis legislation across the 
vast majority of the Asian region, putting pressure on governments to access and 
utilize medical cannabis treatments. 
South Korea’s legislature passed a medical cannabis law in November 2018 
legalizing medical marijuana and other CBD products but it will be strictly regulated 
and dispensed only in special government-run facilities. 
Thailand’s military government unanimously approved medical marijuana 
use.  Thailand, known for its strict narcotics laws and infamous for its harsh penalties 
on drug users, including death penalty voted to amend their 1979 Narcotics Act on 
December 26, 2018, legalizing cannabis for medicinal and research uses. Medical 
marijuana legalization passed the Thai government’s National Legislative Assembly 
(NLA) with flying colors, in a junta-appointed parliamentary majority vote of 166-0 with 
13 abstentions. 
Thailand's rich agricultural and culinary history is one place where cannabis 
has its name on the menu. Prior to its ban in 1935, cannabis was used as a spice in 
Thai boat noodle soup, this traditional soup has historically been seasoned with 
marijuana. 
Cannabis in Sri Lanka is legally sold through Ayurveda herbal shops, and can 
be used for medical and scientific purposes if given a license by the Ministry of Health. 
Cannabis is not criminalized for medical purposes. 
Sri Lanka amended their 1961 Ayurveda Act to legalize medical cannabis use 
in 2013. Sri Lanka already launched in 2017 its first 400 hectare cannabis plantation 
for domestic medical use and exports to the US.  Cannabis plays an important role in 
the culture of Sri Lanka where it is used to treat a range of conditions and to heighten 
sexual energy. 
China which is the world’s second largest economy now produces more than 
half of the world’s cannabis industrial hemp. The hemp, which is a member of the 
cannabis plant family contains a high content of the CBD medicinal compound. 
The Chinese government is encouraging medical cannabis research. Cannabis has a 
long medical history in China as a Chinese herb. 


5
In Malaysia - despite its reputation for having a zero-tolerance on drug-
trafficking, where drug offenses have long accounted for the largest number of 
executions, the death penalty has now been abolished and the medicinal value of 
marijuana is being considered by the government and Malaysia is considered the 
latest country in the region to consider legalizing medical marijuana. 
Singapore known for its strict penalties for drug offenses in 2018 announced a 
program to unlock the therapeutic effects of cannabinoids – the medical compound 
found in the cannabis plant as part of the country’s US$18.2 million synthetic biology 
and research and development program. This Singapore initiative is aimed at 
discovering cannabinoid genes for the sustainable production of medicinal 
cannabinoids and their derivatives. 
India - Medical cannabis use may soon become legal in the country. The 
Council of Scientific and Industrial Research (CSIR) decided to take a lead role in this. 
India only allows medical marijuana research for two organizations, cannabis is still 
highly controlled in any other situation. While India has already legalized medical 
marijuana research it still outlaws many cannabis-related activities. In the summer of 
2017 however, Maneka Gandhi, India’s Minister for Women and Child Development 
voiced her support for legal medical marijuana. 
New Zealand’s parliamentarians passed a bill to legalize medical cannabis in 
December 2018. The law would also pave the way for New Zealand companies to 
manufacture medicinal cannabis products for both the local and international market. 
The following is an alphabetical list of the sixty (60) countries as of the 
year 2018 that have already LEGALIZED/do ALLOW CBD Oil from Cannabis 
plants: 
Argentina, Austria, Belgium, Belize, Brazil, Bulgaria, Canada, Chile, 
China, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, 
England, Estonia, Finland, France, Georgia, Germany, Greece, Guam, 
Guatemala, Hong Kong, Hungary, Iceland, India, Ireland, Italy, Latvia, 
Lithuania, Luxembourg, Malta, Netherlands, Netherlands Antilles, New 
Zealand, Northern Ireland, Norway, Paraguay, Peru, Poland, Portugal, Puerto 
Rico, Romania, Russia, Scotland, Slovak Republic, Slovenia, Sri Lanka, South 
Africa, South Korea, Sweden, Switzerland, Thailand, United States, U.S. Virgin 
Islands, United Kingdom, Uruguay, Wales. 
This clearly demonstrates that more and more countries around the world are 
now taking a progressive approach to cannabis reform. This will take a ripple effect 
leading to other countries toward cannabis policy change which will in turn increase 
patient uptake as more and more people worldwide become more aware and educated 
of the healing benefits and therapeutic potential of the medical cannabis plant. There 
is now an increasing awareness and the clear separation of the “medical” cannabis 


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and acknowledgement on the “medicinal” properties of the cannabis plant versus the 
negative effects of the “recreational” side of the cannabis plant. 
Germany is also the first country in the world to cover the cost of medical 
cannabis – for any therapeutic application approved by a physician – through its 
national health insurance system. 
Spain has decriminalized both medicinal and recreational cannabis for 
personal and private usage, provided there is almost no THC (the psychoactive, 
addictive compound in cannabis plant that creates the “high” or euphoria feeling in the 
users) in the products. 
The Commercial Opportunities and Market Value in North America, Europe, Asia 
and Globally of Medical Cannabis 
The sale of CBD products in the USA has exploded into a US$390 million per 
year industry and is projected to hit US$1.3 Billion by 2022. The entire US market is 
estimated to be worth US$75 Billion by 2030 according to a Cowan Research Report. 
The European cannabis market’s value soared in 2018 with 500 Million Euros 
invested in European cannabis businesses and Europe’s cannabis market is 
estimated to be worth up to Euros 123 Billion by 2028 according to Prohibition 
Partners and the Davos World Economic Forum. 
The Asian market will challenge and perhaps surpass the North American 
market in the next 5 to 10 years. The forecast for the legal medical cannabis market 
in Asia is expected to swell to US$ 8.5 Billion by 2024 from practically nothing today. 
According to the San Francisco-based Grand View Research, the global legal 
medical cannabis market is expected to reach US$55.8 Billion by the end of 2025. 
This Explanatory Note will explain why medicinal cannabis is such a 
wonderful plant with great potential for medicinal purposes and that several cannabis 
research conducted in other countries supports and validates its safety and health 
benefits. As it is therefore very important for the Philippines to catch up with their 
western and Asian counterparts in legalizing under prescribed conditions the 
cannabis for medical and scientific/research purposes while at the same time 
cashing in on its commercial opportunities, economic value and market potential, it is 
truly a market investing proposition. 
WHAT IS CBD: 
The term CBD is an abbreviation for cannabidiol. This is a natural substance 
that is derived from the whole cannabis plants. CBD is extracted and separated from 
specific strains of cannabis. 


 
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CBD in Cannabis: 
a) is non-psychoactive; 
b) is non-addictive; 
c) does not produce a "high"; 
d) it will not alter the user’s state of mind in the same way as smoking THC 
cannabis; and, 
e) has no or very little side effects.  
 
It is important to understand that the CBD is not the same as the THC which 
stands for: tetrahydrocannabinol. While THC, the chemical compound also found in 
the cannabis plant responsible for the psychoactive, addictive effects that produces 
the “high” THC in large doses - is mostly illegal in almost every part of the world, 
while CBD is fully legal in many parts of the world. 
 
Cannabis is a complex plant with over 400 chemical entities of which more 
than 60 of them are cannabinoid compounds. CBD is only one of the chemical 
compounds referred to as cannabinoids. 
 
Cannabinoids can be separated into several sub classes - two of which are 
the: THC (tetrahydrocannabinol) and CBD (cannabidiol). However, CBD is the 
“second most common” compound, with THC being the “most common”. These two 
(2) major cannabis compounds such as  the tetrahydrocannabinol (THC) and 
cannabidiol (CBD),  have opposing effects. 
 
It is important to emphasize the difference between the medicinal virtues found 
in the CBD compound of the cannabis versus the toxicological vices the THC 
compound of the cannabis is known for. 
 
THC and CBD are not the same thing, so they can not be used the same way. 
The two (2) compounds are completely separated and isolated within the plant. 
 
In the USA states where CBD is becoming widely used, there are also only few 
known reports of negative social or medical consequences; in fact, as per Dr. Joseph 
Mercola (www.Mercola.com – ranked as the #1 health website), “CBD has been 
scientifically shown to provide valuable benefits for those struggling with 
“opioid addiction” from THC (the compound present in large quantities in the 
recreational marijuana such as heroin, LSD, ecstasy, etc.).” 
 
According to the University of Washington: 
“CBD may actually have anti-anxiety effects and lessen the 
psychoactive effects of THC. This means that a plant with a greater 
percentage of CBD may reduce the intensity of the effects of the THC, 
which in effect lowers the intensity of the plant.”  


 
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Dr. Joseph Mercola in his website article dated June 4, 2019 goes on to say: 
 
“Research Study shows that Cannabis may be an answer to the 
“Opioid Epidemic”. While THC is “psychoactive” (creates a “high”), CBD has 
been shown to counteract the effects of THC.” 
 
The New York Times quoted the same research according to Dr. Joseph 
Mercola and stated that “While THC has been shown to trigger heroin-seeking 
behavior; CBD has been found to do the complete opposite which is why CBD is 
now being investigated as an aid to end addiction to opioids. CBD might help 
recovering opioid addicts avoid relapse, perhaps the greatest challenge they face 
– and because CBD is not habit-forming … CBD might be a badly needed new 
weapon with which to fight a drug epidemic that claims more than 130 lives daily 
in the United States.” 
 
The medicinal effects of the CBD compound in cannabis will be a big help in 
President Duterte’s primary objective in his drug war – and that is, to help as many 
Filipinos as possible to be delivered from the negative and dangerous effects of the 
illegal use and drug addiction from the large dose of THC compound present in 
“recreational” drugs - causing a great menace in our society by destroying lives and 
families in many countries of the world. 
 
Difference Between Marijuana And Hemp Which Are Both Part Of The Cannabis 
Plant Family 
It has become increasingly important to understand the difference between 
hemp and marijuana and how they relate to Cannabis. 
 
Cannabis is a genus of flowering plants in the Cannabaceae family, which 
consists of three (3) primary species: Cannabis sativa (hemp), Cannabis indica, 
(marijuana) and Cannabis ruderalis (sub specie of marijuana). 
 
“Hemp” is a term used to classify varieties of Cannabis that contain 0.3% or 
“less” THC content (by dry weight). 
 
“Marijuana” is a term used to classify varieties of Cannabis that contain 
“more than” 0.3% THC (by dry weight) and can induce psychotropic or euphoric 
effects on the user. 
 
Based on the context used to describe Hemp and Marijuana, the defining 
characteristic between the two is based on a single factor — the amount of THC in 
the plant — or rather whether it will get the user “high”. 


 
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The defining characteristic between hemp and marijuana is the chemical 
composition contained within each plant. 
 
Both hemp and marijuana can produce high amounts of CBD, the non-
intoxicating cannabis compound; however, THC is produced at very different 
levels. 
 
While hemp can contain no more than 0.3% THC by dry weight, marijuana 
can contain up to 30% THC content. 
 
When it comes to CBD and the case of hemp and marijuana, we are faced 
with yet another important subject that must be addressed. 
 
CBD can be “derived” from either hemp or marijuana, however, given the 
unique characteristics of each plant, one would assume that the CBD derived from 
each plant is different in some way. Surprisingly, they aren’t. 
 
Jeremy Riggle, Ph.D., and Chief Scientist at Mary’s Nutritionals says that “the 
CBD molecule and its associated pharmacology are the same, whether it was 
extracted from hemp or from marijuana. CBD is CBD, regardless of where it was 
originally derived from.” 
 
If, however, the CBD is derived from hemp which contains no more than 
0.3% THC, it would not be regulated as a controlled substance and is federally legal 
in the USA. The keyword here is “derived from hemp.” 
 
The 2018 Farm Bill in the US explicitly applies to “hemp and hemp-derived 
products.” Hemp (cannabis sativa) can now be grown and sold legally in the US per 
the 2018 US Farm Bill. 
 
It does not include marijuana-derived CBD, which remains under the 
regulation of the US Food and Drug Administration (FDA) as a controlled substance. 
 
The discovery of the Cannabis compounds has led to the further discovery of 
an important neurotransmitter system in the human body called the endocannabinoid 
system. This system is widely distributed in the human brain and in the human body, 
and is considered to be responsible for numerous significant functions.  Dr. Raphael 
Mechoulam’s research shows that Cannabis offers significant health benefits with 
minimal risk due to the human body’s own “endocannabinoid system.” 
 


 
10
Aside from the research done by Dr. Raphael Mechoulam in Israel, researchers 
at St. Louis University Medical School in the US also discovered a signaling network 
hidden in the brain—and throughout the entire body—that changed the future of CBD 
in America forever. 
 
Named the Endocannabinoid System, or ECS, this network of receptors is 
specifically designed to use CBD and other compounds in the hemp plant. 
 
In fact, the human brain has more cannabinoid receptors than any other type 
of receptor. 
 
To also quote Dr. Joesph Mercola’s article entitled: “Marijuana Research 
Supports Its Safety and Benefits”:  
 
“The fact that there's a plant that acts on your body's own cannabinoid 
receptors is a phenomenon Dr. Mechoulam calls a "quirk of nature." He's 
referring to the fact that we didn't develop these receptors in order to smoke 
pot—we have them because we have our own endogenous cannabinoid 
system. 
 
Your body makes its own cannabinoids, similar to those found in 
marijuana but present in much smaller amounts. These endocannabinoids 
appear to perform signaling operations similar to your body's neurotransmitters, 
such as dopamine and serotonin. Cannabinoid receptors can be found on 
cell membranes throughout your body - in fact, scientists now believe they 
may represent the most widespread receptor system. Two receptor types have 
been identified: 
• CB1: Cannabinoid receptors that are extremely prolific in your brain 
(excluding your brain stem), but also present in your heart, lungs, 
kidneys, liver, pancreas, and other parts of your body. 
 
• CB2: Cannabinoid receptors primarily found in your immune system.” 
 
This explains why our human bodies are synergistically made to use this 
powerful botanical plant. 
 
Medicinal Cannabis (CBD) has at least 282 HUGE Potential Healing Benefits! 
 
In more than 12,797 peer-reviewed studies on Medicinal Cannabis (CBD), the 
results have been absolutely astonishing. 
 


 
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There are 168 clinical studies on the Medicinal Cannabis (CBD) in progress 
registered with the U.S. National Library of Medicine—with more to come. 
 
Cannabis can have clear and specific medical benefits for patients. Patients’ 
stories around the world have been illuminated in mainstream discourse and many 
people are recognizing that patient groups and research projects have helped mature 
the conversation around medical cannabis. 
 
Below Are Some of What The Peer-Reviewed Research Is Saying About 
Medical Cannabis (CBD): 
Fights brain cell inflammation.  In a study by the Salk Institute, researchers 
found hemp targets neural inflammation and removes toxic proteins in 
neural cells. 
93% success for sore joints! In a study published in the European Journal of 
Internal Medicine, 2,736 elderly patients were given hemp for joint 
aches. After six months, 93% of patients reported relief. 
Significant support for healthy insulin and blood sugar levels. According to 
a 5-year study from Harvard and Beth Israel Deaconess Medical 
Center, hemp users saw 16% better insulin levels, 18% better insulin 
metabolism, smaller waste circumference, and better HDL levels. 
A single dose supports healthy blood pressure! An Oxford University 
study found just one dose of hemp supports healthier blood pressure in 
patients and prevents blood pressure spikes in response to physical and 
mental stress. 
Substantial mood and anxiety improvement ... with a single dose. In a study 
by Washington State University, researchers tracked 1,399 patients. 
Patients reported 58% better mood and anxiety ratings following hemp 
use. What’s more, patients experienced these results after just a single 
dose ... reporting improvement 93% of the time. 
Supports a younger, healthier brain — in just one month! In a study 
published in the Journal of Alzheimer’s Disease, a dozen aging 
memory patients were given hemp over the course of four weeks. 
Researchers reported substantial relief, including a 71% improvement in 
mood. 


 
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Boosts brain stem cells. In a study published in the Journal of Cellular 
Biochemistry, researchers used hemp to generate new neural stem 
cells in the brain’s hippocampus — a process known as neurogenesis. 
94% of patients report effective relief for dozens of different health 
concerns! University of New Mexico researchers examined 13,687 
patients using hemp and found an average 37% improvement in 
symptoms — without negative side effects. What’s more, 94% of patients 
reported symptom relief following hemp use! 
One dose enhances mood for days. In a study published in the Journal of 
Molecular Biology, researchers treated patients with a single dose and 
found it boosted mood in just 30 minutes... and 7 days after administered. 
100% better inflammation markers in blood sugar patients! In a prestigious 
California University study, researchers tested for the key inflammation 
marker, C-Reactive Protein, and found average double higher levels in 
the non-hemp group compared to the hemp group. 
Healthy blood sugar support. In a prestigious California University study, 
10,896 adults were examined for how hemp use impacted their blood 
sugar. Researchers found hemp users had up to 330% better chance of 
healthier blood sugar compared to the non-hemp group. That means non-
hemp users experienced 3.3x higher rate of blood sugar concerns! 
45% improvement in sleep! University of New Mexico researchers examined 
409 hemp users struggling with sleep concerns. The patients reported an 
average 45% improvement in sleep scores following use, meaning 
longer, deeper, and more refreshing sleep — without side effects. 
Supports memory retention — with a single small daily dose. In a study 
published in the journal Nature, researchers treated elderly patients with 
just a single daily dose of hemp. In just a matter of four weeks, the elderly 
patients performed similar to the younger ones just a third of their age. 
Even their genetic profile matched that of the younger ones! 
Enhances pancreatic b-cell function and supports healthy glucose levels. 
In a study by Oxford University, researchers gave hemp to 125 blood 
sugar patients. They found it also enhanced the function of pancreatic b-
cells, which are essential for healthy insulin production. 
Turns off the key enzyme tied to brain aging! In a study from the Scripps 
Institute, researchers used hemp to block a key enzyme tied to brain 


 
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aging. Researchers said it works better than “currently anything available 
to patients.” 
Improves inflammation markers in heart patients. In a study by the National 
Institutes of Health, researchers gave to hemp heart patients who saw 
improved levels of all inflammation markers, better heart function and less 
risk of a sudden cardiac episode. Researchers said that hemp has 
“tremendous therapeutic potential” for heart concerns. 
Cuts lung cancer tumor growth in half based on a 2007 Harvard Medical 
School Study on medicinal marijuana use. 
 
The list goes on and on. 
 
There’s almost nothing medical cannabis (CBD) can’t do for your body… 
and no result it can’t deliver… 
 
What the international news headlines says about Medical Cannabis (CBD): 
 
CNN declares a “GLOBAL REVOLUTION” is underway 
 
The GUARDIAN calls it a “Miracle compound” 
 
The Wall Street Journal says “It’s like the Internet in 1997”. 
 
TODAY named it: “The latest health trend … You’re going to be seeing a 
lot more of it” 
 
NEW YORK TIMES even called it…“The cure for the 21st century”. 
 
The Function and Role of the Philippine Cannabis Development Authority 
(PhilCADA) 
I. 
To Develop a Comprehensive Five (5) Year Medical Cannabis Development 
Program 
 
II. 
To Provide, Implement, Oversee Stringent Quality Control from the Farm to 
Retail Production and Distribution: 
1. 
While it seems clear CBD can be beneficial for a range of health issues, 
quality and dosing are important issues that cannot be overlooked. 


14
Because medical cannabis is recommended for specific health 
conditions, regulation and quality assurance are needed. It is an 
important goal  to produce high quality CBD extracts with very precise 
quality controls to be able to effectively safeguard the quality, potency 
and purity at every step  until the final product. 
2.
Quality Controls need to be in place if CBD in certain situations can
prevent counter-indications with other pharmaceutical drugs or
synthetic-based medications.
3.
Accurate Labeling is required  of the CBD and THC content on
bottles/packaging. It can not be underlabeled or overlabeled.
According to the University of Pennsylvania 70% of CBD Oils on the  US
market are mislabeled.
Time Magazine published alarming research from the Journal of 
the American Medical Association showing that 7 out of 10 CBD 
products do not contain what they claim on the label. 
CBD oils and by products are proposed by this Act to be  legal 
to possess if they contain no more than 0.3 percent THC, a 
component in marijuana that, like hemp, also is derived from the 
cannabis plant. This being a maximum as a legal limit. Depending 
upon the medical condition to be treated, the legal limit may be reduced 
to lower than 0.3% or even reduced to zero (0) THC. 
4.
Quality controls should include testing for microbes, pesticides and
heavy metals. Heavy metal testing is particularly important for hemp-
based CBD products, as the plant is known to extract heavy metals from
the soil as it must be grown in clean soil.
As a general rule, it is recommended to make it mandatory that 
all CBD products be certified organic (from internationally certified 
Organic Certifiers) from farm level to packaging to ensure the least 
amount of contamination with pesticides and other harmful and toxic 
agricultural contaminants such as lead, cadmium and mould. It is very 
important to educate growers/ farmers. There must be no residue of 
toxic solvents. Volatile organic solvents should not be allowed to avoid 
contaminants of hexane, butane, and isopropanol. 
China has flooded the U.S. market with CBD. Some were 
discovered to be soaked with horrific pesticides … and might even be 
100% fake. While some products are even highly contaminated with 
THC. 
The goal is to produce medical grade cannabis so the plants 
must be free of hazardous contents and safe to use. 


 
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Also - organic-certified CBD oils and other cannabis by-products 
will have more value added for export as compared with those that are 
non- organic certified. 
 
5. 
Medical cannabis should be overseen by an agency responsible for 
making sure all the products from the farm all the way to the finished 
products are pharmaceutical grade. Medical grade CBD oils, sprays, 
patches, lozenges, etc. should be precisely measured and regulated. 
Medical cannabis from the farm to the finished product should be held to 
the highest level of standards and traceability. 
 
A special panel of technical experts organized by the Philippine 
Cannabis Development Authority (PhilCADA), as proposed to be 
established under this Bill needs to be set up to monitor cannabis farms, 
processing/ manufacturing of cannabis products and its use that may be 
authorized by PhilCADA under this Bill. 
 
6. 
All CBD products or by-products should be verified by laboratories of 
PhilCADA or independent third parties authorized and licensed by 
PhilCADA. 
 
7. 
The PhilCADA is tasked to implement rigorous quality control guidelines. 
 
III. 
To Oversee, Manage, Handle Cultivation Planting and Harvesting of Cannabis 
Plants 
1. 
Cultivation must be approved and operated under the direct supervision 
and control of the PhilCADA. 
 
2. 
Only PhilCADA authorized or sponsored State Universities of Agriculture 
will be allowed during the experimental period to grow and cultivate 
specific cannabis species for a prescribed period before private 
enterprises can be allowed to grow and cultivate cannabis plants. 
 
3. 
Designate strategically located and highly secured government-
monitored and controlled Medical Cannabis Farms. 
 
4. 
PhilCADA shall select cannabis species or varieties for research 
because the oil extracts will be used for different ailments/health issues. 
 
5. 
Select cannabis seeds from abroad that are already graded and have 
passed the process of improving plant cultivars. The seeds must 
be of good quality.  
 
6. 
Organize and set up laboratories and processing/ manufacturing facility 
in a restricted zone that will be the initial legal medical cannabis farm(s); 
lab and processing facilities in the Philippines.  
 
IV. 
To Organize And Conduct Monitoring/ Training  


 
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1. 
All medical doctors, pharmacists, dentists, medical practitioners needs 
to undergo training on the application, usage, dosing and any contra-
indications of medical cannabis before being issued an Authorization 
by PhilCADA to prescribe the medical cannabis products or by-products 
to patients. 
 
2. 
To set-up a monitoring and reporting system of patients prescribed to 
use an authorized product or by-products desired from the cannabis 
plant. 
 
3. 
Develop Guidelines on the usage, application and dosing of medical 
cannabis products or by-products recognized to have therapeutic, 
medical and curative benefits for specific ailments. 
 
V. 
To Manage, Prepare Guidelines on the Philippine National Standards including 
the Issuance of Licenses/ Accreditations/ Registrations and Commodity 
Clearances For Farming/Growing/Manufacturing, Processing and Packaging 
Medical Cannabis Products 
 
The PhilCADA needs to establish at the outset clear licensing and 
regulatory guidelines that will help guide the industry forward. 
 
VI. 
Establishment of a Cannabis Library 
 
The PhilCADA shall establish a Cannabis Library that will serve as a 
clearing house for Cannabis-related information that directly or indirectly impact 
on the cannabis industry which shall include in print, video, audio or in digital 
format books, journals, bulletins, magazines, peer-reviewed researches, thesis 
and dissertations, product catalogs, laws and regulations on the cannabis 
industry in the Philippines and other countries.  
 
VII. 
To Organize and Oversee a Scientific, Medical Research and Product 
Development of Cannabis-Based Products/By-Products 
 
Research and product development into medical cannabis will be essential to 
industry development and growth. 
1. 
To organize, study, analyze and compare different cultivars of cannabis 
plants and their application in scientific and medical research. 
2. 
To conduct testing and clinical trials as needed. 
 
Why We Need to Legalize and Develop A Medical Cannabis Industry 
Cannabis needs to be legalized in the Philippines for medical and scientific/ 
research purposes. 


 
17
 
The development of a Medical Cannabis Industry should be among the top 
policy priority of the Philippine government. 
 
And in line with this and to further its objectives effectively – there is a need to 
establish the Philippine Cannabis Development Authority (PhilCADA) whose main 
functions are earlier stated in order to monitor and oversee the operations, growth and 
legal compliance of the Medical Cannabis Industry.  
1. 
The Cannabis plants and its medical grade products have high demand and 
economic value for export. Philippine laws should be passed that will see 
medical cannabis become a fully commercialized crop within the next five (5) 
years. The global legal medical cannabis market is expected to reach 
US$55.8 Billion by the end of 2025. 
 
The economic opportunities are evidently abundant, with medical 
cannabis companies in other countries now markedly disrupting major 
international markets such as beverages, alcohol, food, cosmetics, wellness 
and tobacco. 
 
2. 
The method of using Cannabis in medical treatment is of great importance in 
helping solve many health issues in our country. Medical Cannabis is now 
becoming a preferred and effective treatment for fatal diseases like cancer. 
  
To focus efforts on manufacturing quality medicine from medical 
cannabis for the public at affordable prices. 
 
3. 
The Philippines can aim to eventually become one of the top medical cannabis 
destination in Asia and this will contribute to the medical tourism boom with 
foreigners seeking out affordable but quality cannabis-related healthcare 
treatments. 
 
4. 
Nowhere else has it been it explored but with legalization of the medical uses 
and research of medical cannabis – Filipino scientists can now experiment, 
develop, study, analyze and explore the medicinal and synergistic potential of 
combining CBD oil with other plant based oils such as coconut oil, moringa oil 
and other healing tropical oils of the Philippines as it might provide other healing 
and therapeutic benefits not yet known to man which the Philippines can 
commercialize. 
 
5. 
When it comes to treating opioid addiction, public health surveys in the US have 
provided evidence for decreased opioid use with the use of medical 
cannabis. CBD or medical cannabis will be an effective new weapon with 
which to fight the illegal and recreational drug epidemic in the Philippines. 
 
This Act should not be deemed in any manner to advocate, promote, authorize, 
legalize the “recreational” and/or non-medical use of the cannabis plants. 
 


18
The foregoing considered and in recognition of the merits of the Bill, the 
approval hereof is earnestly sought.  
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS “NICK” C. ENCISO VIII 


19
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS “NICK” C. ENCISO VIII 
AN ACT  
TO ESTABLISH THE PHILIPPINE CANNABIS DEVELOPMENT AUTHORITY 
(PhilCADA), DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING 
FUNDS THEREFOR AND OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled: 
WHEREAS, the development of the cannabis industry is a new and pioneering 
program in the Philippines that requires a special governmental body to promote, 
develop and regulate this industry; 
WHEREAS, the cannabis plant and any product or by-product derived therefrom is, 
under current law, a restricted and prohibited plant material and the products or by-
products produced therefrom are considered dangerous drugs but the current law also 
states that to provide a balance in the national drug control program such that persons 
with legitimate medical needs are not deterred from being treated with appropriate 
medications which include the use of medicinal Cannabis as provided in this Act. 
WHEREAS, within the permissible parameters and subject to the regulatory 
framework provided in this Act, the cultivation, production, processing, manufacture, 
the sale and marketing and use of cannabis products and by products are in this Act, 
legalized and decriminalized subject to the terms and conditions hereof; 
WHEREAS, the cannabis plants, with species classified as either hemp or marijuana 
have been recognized and accepted, after long years of research, clinical analysis and 
trials, to have beneficial therapeutic medicinal or curative use and applications for 
different medical conditions; 
4208


20
WHEREAS, researches and applications of cannabis have primarily focused on three 
(3) species of cannabis specifically: Cannabis sativa (hemp), Cannabis indica
(marijuana) and Cannabis ruderalis (sub specie of marijuana), each of which species
have been shown to have varying ratios of CBD to THC content;
CBD stands for cannabidiol, while THC means tetrahydrocannabinol, which 
compounds are described in this Act; 
WHEREAS, the medicinal compound in cannabis plant is found in its CBD 
compound.  Hence, in the extraction of the compounds from the cannabis plant, the 
greater percentage that the processed product or by-product contain is the CBD 
compound and only tolerable percentage of THC shall remain, or the THC is altogether 
removed, such that the end-product shall be non-psychoactive, non-addictive, does 
not produce a euphoric “high”, or intoxicating effect. And finally, the processed product 
or by product shall have no or very little side effect. 
WHEREAS, hybrid varieties have been developed and continue to be developed to 
intensify or modify the characteristics of the cannabis plants to make it more suitable 
to the medical condition to which the processed product or by-product will be applied. 
WHEREAS, commercial crossbreeds have also been developed with a mix of sativa 
and indica genes, sometimes including ruderalis. 
WHEREAS, there are therefore Cannabis strains with varying ratios of CBD to THC 
as there are processed Cannabis with zero THC content and/or with additional 
ingredients from plants other than Cannabis which are not included in the list of 
Dangerous Drugs. 
WHEREAS, scientific research has established that there is in every human body what 
is called the ENDOCANNABINOID System (ECS) which are present in the brain, 
heart, lungs, kidneys, liver, pancreas, cell membranes and other parts of the body 
such as the joints, the feet, shoulder, the hands and the back which serve as a network 
of receptors for Cannabinoids (CBD).  While the human body naturally makes its own 
Cannabinoids (CBD) similar to the CBD in Cannabis plants, but as the human body 
ages the supply of Cannabinoids (CBD) decreases. The human body being designed 
to use CBD but when its natural supply in the human body diminishes as a person 
grows older, the human body looks for supplemental CBD (cannabinoids) to prevent 
many ailments or diseases. 
For example, there is a growing volume of scientific evidence that when CBD 
(cannabinoids) enters the human body’s ENDOCANNABINOID System, it helps in 
relieving body pain by turning off pain at the source; CBD helps support a person’s 
memory by slowing age-related cognitive decline; CBD significantly supports healthy 


21
insulin and blood sugar levels;  CBD supports healthy blood pressure; CBD has anti-
cancer action and has been shown to slow the growth of cancer cells. 
WHEREAS, it has also been scientifically shown that medical cannabis (CBD) provide 
valuable benefits for those struggling with opioid addiction.  CBD likewise helps 
recovering opioid addicts avoid relapse. CBD in medical cannabis has been 
recommended as needed to help fight the illegal and “recreational drug” epidemic. 
NOW, THEREFORE, the Senate and the House of Representatives in Congress 
assembled, by virtue of the powers vested in them by the Constitution, do hereby 
approve and enact the following: 
ARTICLE I 
TITLE AND POLICY OF STATE 
SECTION 1. Short Title.  This Act shall be known as the PHILIPPINE CANNABIS 
DEVELOPMENT AUTHORITY, to be briefly referred to as “PhilCADA”. 
SECTION 2. Declaration of Policy.  It is hereby declared the policy of the State to 
insure the safe and good quality supply of the cannabis plant and the products and by-
products derived therefrom such that the cultivation, production, processing, 
manufacture, the sale and use thereof are hereby allowed within and subject to 
prescribed parameters and regulated to protect the health and well-being of the 
people, as provided in this Act. 
In the implementation of the afore-stated policy and the WHEREAS Clauses of 
this Act, the government shall, in accordance with the provisions of this Act: 
a.
Establish standards and quality measures for the cultivation and
production of the cannabis plant, the processing and manufacture of any
product or by-product derived therefrom;
b.
Adopt regulatory measures to insure that only authorized uses and users
of the cannabis plant and the products and by-products thereof as
provided in this Act shall only be for therapeutic, medicinal and curative
purposes.
ARTICLE II 
THE PHILIPPINE CANNABIS DEVELOPMENT AUTHORITY 
SECTION 1. Establishment of the Authority.  In order to achieve and implement the 
policy objective and development goals stated herein, there is hereby created the 
Philippine Cannabis Development Authority hereinafter referred to as the 
“PhilCADA” with power and authority to establish an organization that shall be 
responsible for the efficient and effective implementation of its research and 
development plan, programs and priority projects. 


 
22
 
The PhilCADA shall be an attached agency in the Office of the President of the 
Philippines. 
 
SECTION 2. Powers and Functions. 
1. 
For the purpose of promoting the orderly and accelerated development of 
the Cannabis Industry in all its aspects, PhilCADA through its Board of 
Directors as hereinafter constituted, is hereby vested with the following 
powers and functions: 
a) 
To formulate and adopt a Comprehensive Development Plan for the 
Cannabis industry in the Philippines and to delegate to its operating 
management the implementation of such Plan including the 
programs, projects and services authorized therein; 
 
b) 
To establish and maintain an organization with specific functions and 
responsibilities for each operating unit to be directly managed by its 
Administrator, Deputies and other operating officers and supporting 
personnel; 
 
c) 
To formulate and adopt the Guidelines of the Philippine National 
Standards for Cannabis plants, its products and by-products 
including the rules and regulations concerning the issuances of 
licenses, accreditations, registrations and commodity clearances for 
the importation of Cannabis seeds or plantlets for the cultivation and 
production, harvest and storage of cannabis crops including the 
processing /manufacturing, packaging, labeling and distribution or 
sale of medical cannabis products or by-products; 
 
d) 
To conduct or sponsor training and educational programs on specific 
aspects or facets of the cannabis industry. The attendance or 
participation in such programs shall be a prerequisite to permitting 
licensed physicians and other medical practitioners to prescribe or 
dispense medical cannabis products or by-products; 
 
e) 
To hold seminars, workshops or conferences on the Cannabis 
industry and on its products and by-products, particularly on the 
beneficial effects of the medical cannabis as in this Act authorized 
and the risks of recreational cannabis which in this Act, is prohibited 
to be used. 
 
f) 
To endorse and recommend to the Philippine Commission on Higher 
Education and Development (CHED) to adopt in the curriculum of 
universities and colleges of agriculture, medicine, and applied 
sciences and technology a subject or course on aspects of the 
cannabis industry relevant to the academic degree being taken by 
their students. 
 


 
23
2. 
To ensure control that quality cultivars of the cannabis plant  when grown 
outdoors are more appropriate and suitable to the climatic and soil 
conditions of the land area selected and/or cultivated through indoor 
greenhouses, or vertical structures, hydroponics  and/or aeroponics 
methods; and to prevent diversion of the cannabis plants and its strains or 
derivatives and processed products or by-products to unathorized use or 
users and that the sales and disposal or dispensation thereof are only for 
therapeutic, medical or curative uses with prescription by licensed 
physicians or medical practitioners, the PhilCADA shall, for a period of five 
(5) years from and after the commencement of its business and operations, 
have the exclusive power and authority to undertake and perform the 
following: 
a. 
To grow, cultivate, propagate cannabis cultivars of different 
species giving priority and primary emphasis to cannabis sativa 
(hemp) and cannabis ruderalis (sub specie of marijuana) which 
have high percentages of CBD compounds and low THC 
compounds.  
 
Cannabis indica (marijuana) which has a high content of  
THC compound shall be experimentally grown and studied 
scientifically  on how its THC content can be lowered or altogether 
removed by technical or technological extraction and/or other 
scientific means 
of 
propagation 
such 
as 
hybriding 
or 
crossbreeding, as determined to be feasible; 
 
b. 
To perform and undertake its propagation and cultivation of 
selected cultivars under controlled and restricted conditions, the 
PhilCADA is hereby allowed and permitted to exclusively import 
the cannabis seeds or plantlets which it shall propagate and 
cultivate on its own selected agricultural lands that it may acquire 
by purchase or ceded or transferred to it by the Department of 
Environment and Natural Resources (DENR); or the Department 
of Agriculture (DA); or other government agencies, subdivisions 
or instrumentalities of government and/or to contract under such 
terms and conditions that PHILCADA shall prescribe the growing 
and propagation  thereof by State Universities of Agriculture in the 
Philippines that PhilCADA may select for scientific research 
and/or to generate supply of selected cannabis plants or strains 
thereof for eventual commercial processing/manufacturing by 
PhilCADA and/or its authorized processors or manufacturers for 
exclusive sale or distribution by PhilCADA to be administered by 
licensed physicians or medical practitioners and/or through 
accredited hospital or clinics, subject to reporting and monitoring 
system prescribed by PhilCADA; 
 
c. 
In support of its own internal staff PhilCADA shall hire or retain or 
cause to be contracted Consultants, local or foreign, individuals 
or entities to advise or extend expertise in the Cannabis 
cultivation that PhilCADA shall directly undertake and/or to cause 
to be cultivated or grown for and in its behalf by selected State 


 
24
Universities of Agriculture in the Philippines under controlled 
conditions prescribed by PhilCADA. 
 
The advisory function of the Consultant or Consultants 
shall involve all aspects of Cannabis cultivation requirements 
starting from the selection and acquisition of seeds or plantlets; 
growth medium to be used, i.e. soil required; and/or water 
required as in hydroponics; or air required as in aeroponics; the 
growing requirements for indoor and/or outdoor cultivation in 
terms of temperature range, light, watering amount and 
frequency, humidity, nutrient requirements depending on the 
specie and variety of the cannabis plants through the use of 
organic fertilizers. 
 
The cultivation process for which expert advice and 
direction are needed particularly during the start-up phase of 
PhilCADA’s operations shall include the germination phase of the 
seeding stage, going to the vegetative stage, the flowering stage 
up to the  harvesting stage, including the drying, curing and 
storage prior to extracting and processing with the application of 
quality standards. 
 
d. 
To hire or retain or cause to be contracted technical advice from 
Consultants, local or foreign, individuals or entities, that will 
provide advice and expertise on the technologies of the tools, 
equipment and paraphernalia for  the cultivation requirements 
and the processing/manufacturing technologies required. 
 
The PhilCADA may avail of Consultants for a professional 
fee, to acquire state of the art technologies required by it in the 
cultivation, processing or manufacture of Cannabis-based 
products or by-products and such professional fees shall not be 
based on the value of the equipment, tools and technology to be 
acquired but in the services provided by the Consultants, as 
recommended by the National Economic Development Authority 
(NEDA); 
 
e. 
To import for resale in the Philippines to authorized users from 
processors/manufacturers in foreign countries that comply with 
the safety and quality standards prescribed by PHILCADA after 
consultation with the Advisory Council  provided in this Act.  Such 
finished or processed/ manufactured products or by-products that 
are Cannabis-based shall belong to the following categories: 
1. 
CBD derived from Cannabis plant or strains thereof, 
without THC content; 
 
2. 
CBD derived from Cannabis plant or strains thereof, 
without THC content, but combined with ingredients from 


 
25
plants other than cannabis or strains thereof that are not 
listed in the Dangerous Drug List under current law. 
 
3. 
CBD derived from Cannabis plant or strains thereof with 
THC content of not more than 0.03%. 
 
SECTION 3. Governing Board.  The corporate powers and duties of the PhilCADA 
shall be vested in and exercised by a Board of seven (7) members composed of the 
following:  
1. 
Secretary-General, National Economic and Development Authority 
(NEDA) 
2. 
Secretary of the Department of Health (DOH) 
3. 
Secretary of the Department of Science and Technology (DOST) 
4. 
Secretary of  the Department of Agriculture (DA) 
5. 
Secretary of the Department of Trade and Industry (DTI) 
6. 
Secretary of the Department of Environment and Natural Resources 
(DENR) 
7. 
Secretary of the Department of Finance (DOF) 
 
The President of the Philippines shall appoint the Chairman and the Vice-
Chairman of the Board of Directors of PhilCADA. In case of absence or inability of the 
Chairman to attend any meeting, the Vice-Chairman shall preside at the meeting of 
the Board.  
 
In the absence or inability of any of the aforementioned Executive Department 
Secretaries to attend or participate or vote on any matter taken up in the meeting of 
the Board of Directors of PhilCADA, their respective designated representatives with 
the rank of Undersecretary shall attend or participate and be entitled to vote. 
 
After the period of two (2) years from the effectivity of this Act, the President of 
the Philippines shall be empowered to continue the present composition of the Board 
or change the composition of the Board with full-time members with recognized 
competence or experience in any of the varying aspects of the cannabis industry, such 
that together, the composition of the Board shall have a multi-disciplinary approach to 
the governance of the cannabis industry. 
 
SECTION 4. Term of Office. The Term of Office of the New Composition of the Board 
are as follows: 
       The President shall appoint the: 
a) 
The Chairman and Vice-Chairman of the Board for a term of five (5) 
years 
 
b) 
The next three (3) Board Members shall be for a period of four (4) 
years, while the last two (2) members of the Board shall have terms 
of office of three (3) years. 
 


 
26
Should any term of office of the new composition of the Board expire, the 
replacement uniformly will be for a term of five (5) years. 
 
The term of office of the new composition of the Board of Directors may be 
extended once for a period of three (3) years. 
 
SECTION 5. Principal Office. The PhilCADA shall maintain its principal office in the 
Metro Manila area as its Board of Directors, with the approval of the President of the 
Philippines shall decide. It may establish branches and/or operating units or affiliated 
agencies as may be necessary for the proper conduct of its business and activities. 
 
SECTION 6. Executive Office and Personnel. The Chief Executive Officer of 
PhilCADA shall be an Administrator, who shall be assisted by such Deputy 
Administrators as the board may prescribe, all of whom shall be appointed or removed 
for cause by the Board and delegated with such powers, functions and duties as the 
Board may prescribe. 
 
 All officers and employees of PhilCADA shall be selected and appointed, after 
screening and evaluation, on the basis of merit and fitness. 
 
SECTION 7. Operating Units. The Board shall establish such operating units, of such 
classifications and categories as the Board shall determine to be necessary and useful 
for the discharge of their respective functions and duties. 
 
SECTION 8. Meeting and Quorum.  The Board shall meet at least once a month or 
as often as the exigencies of the service may demand except that at its organizational 
stage during its first year of its start-up and operations, it shall meet at least twice a 
month. 
 
SECTION 9. Advisory Committee. There is hereby constituted an advisory 
committee composed of the Chief Executive Officer (CEO) or equivalent rank of the 
Food and Drug Administration (FDA); the Philippine Drug and Enforcement Agency 
(PDEA), the Philippine Health Insurance Corporation (PhilHealth) and the Philippine 
Institute of Traditional and Alternative Health (PITAHC) who shall advise and make 
recommendations 
to 
the 
Administrator 
of 
PhilCADA 
in 
formulating 
his 
recommendations to the Board of PhilCADA of the Rules and Regulations mandated 
in this Act. 
 
SECTION 10. Annual Appropriations.  The PHILCADA shall submit to the Congress 
of the Philippines through the Department of Budget and Management (DBM) an 
annual operating budget with capital outlays for its operating units. 


 
27
During its first year’s operations, there is hereby appropriated the amount of 
Three Hundred Million Pesos (Php300,000,000.00) as its start-up budget for its 
operations. 
 
SECTION 11. Research and Development Fund.  A Research and Development 
Fund hereinafter referred to as “The Fund” is hereby established exclusively for the 
use of PHILCADA in the implementation of its programs, projects and services under 
its Comprehensive Development Plan which shall be contributed by the National 
Government, to wit: 
(a.) 
the amount of Five Hundred Million Pesos (Php500,000,000.00) for the first 
(1st) year of its operation;  
 
(b.) 
the amount of Three Hundred Million Pesos (Php300,000,000.00) for its 
second (2nd) year of operations; and 
 
(c.) 
the amount of Two Hundred Million Pesos (Php200,000,000.00) for its third 
(3rd) year of operations.  
 
No part of this fund shall be used for overhead expenses and capital outlays for 
internal administration of PhilCADA. 
 
SECTION 12. Financial Grants and Technical Assistance.  The Administrator of 
PhilCADA upon authority of the Board can negotiate and obtain financial grants, 
technical assistance or donations in kind, in support of its research and development 
plans, programs, projects and services. 
 
       The Administrator shall report within 30 days upon obtaining such financial grants, 
technical assistance or donations to the National Economic Development Authority 
(NEDA) and to the Office of the President.  
 
SECTION 13. Penalties and Sanctions.  Except as provided under the provisions of 
this Act and permitted to be undertaken under the rules and regulations of PhilCADA 
and/or by duly approved supplemental resolution, revision or amendment of the rules 
and regulations of the Board of Directors of PhilCADA, it is prohibited and hereby 
declared unlawful for any person or entity: 
1. 
To import any seeds or planting materials for any specie or strain of the 
cannabis plant; 
 
2. 
To cultivate, propagate or grow any cannabis plant or strain thereof; 
 
3. 
To process, manufacture or produce any cannabis-based product or by-
product; 
 
4. 
To possess, use or smoke, or sell any recreational cannabis or 
marijuana; 
 


 
28
5. 
To possess or use cannabis-based product or by-product authorized to 
be used for therapeutic, medicinal or curative purpose, without 
prescription from a physician or medical practitioner with a valid permit 
from PhilCADA. 
 
It is likewise prohibited and unlawful for any physician or medical practitioner to 
dispense cannabis-based product or by-product without obtaining a permit from 
PhilCADA, which permit shall have a validity of two (2) years subject to renewal to be 
issued after the physician or medical practitioner shall have attended a qualifying 
seminar or continuing education program. 
 
Any person, or the President and Treasurer of an entity who violate(s) any of 
the provisions of this Section of this Act, shall upon conviction and final judgment be 
punished with a fine ranging from One Hundred Thousand Pesos (Php100,000.00) to 
Five Hundred Pesos (Php500,000.00) or imprisonment ranging from prision 
correccional to prision mayor, as provided in the Revised Penal Code, or both fine 
and imprisonment to be imposed in the sound discretion of the Court, depending upon 
gravity of the offense committed. 
 
If the violation is committed by a physician or medical practitioner, the additional 
penalty of suspension for a period not exceeding one (1) year or revocation of his/her 
license to practice his/her profession shall be imposed. 
 
SECTION 14. Congressional Oversight. There is hereby created a Joint 
Congressional Oversight Committee on the Medical Cannabis Industry to conduct an 
annual review, of the implementation of this Act which shall entail a systematic 
evaluation of the performance or accomplishments performed under this Act and their 
impact to the cannabis industry, to stakeholders and to the health and well-being of 
the beneficiaries of the medication or treatment with cannabis-based products and by-
products. 
 
The Joint Congressional Oversight Committee shall be jointly chaired by the 
Chairpersons of the Senate Committee on Health and Demography and the House of 
Representatives Committee on Health. It shall be composed of five (5) members from 
the Senate and five (5) members from the House of Representatives, to be appointed 
by the Senate President and the Speaker of the House of Representatives, 
respectively. 
 
SECTION 15. Transitional Provisions. Three (3) months prior to the end of its fifth 
year of its operations, PhilCADA shall conduct public hearings, to consider what 
specific aspects of the exclusive power and authority reserved under this Act to 
PhilCADA shall be devolved to the private sector stakeholders and what power or 
authority in the cannabis industry shall, in the public interest, be retained by PhilCADA 
or reverted back to other regulatory agencies of the national government.  Otherwise, 


 
29
PhilCADA shall retain, preserve and continue all of its powers and functions mandated 
under this Act.  
 
The Congressional Oversight Committee may be invited to such hearings. The 
recommendations of PhilCADA shall be submitted to the Office of the President and 
to both Houses of Congress for their due considerations and action. 
 
SECTION 16. Repealing Clause.  All laws, orders or rules and regulations of other 
laws or parts thereof which are inconsistent with any of the provisions of this Act are 
hereby repealed or modified accordingly. 
 
SECTION 17.  Separability Clause.  Any provision or portion of this Act that may be 
declared unconstitutional shall not have the effect of nullifying the other provisions 
hereof provided that such remaining portions can still stand and be given effect to 
accomplish the purposes and objectives of this Act. 
       
SECTION 18.  Effectivity.  This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation in the Philippines. 
 
Approved,