TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
25 AUG -6 A10 54
SENATE
S. No. 1020
RHCtIVjjdV
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
REQUIRING LOCAL GOVERNMENT UNITS TO EARMARK PORTION OF 
THEIR NATIONAL TAX ALLOTMENTS FOR FREE MEDICINES TO INDIGENT 
PATIENTS IN THEIR LOCALITIES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Studies have indicated that medicines in the Philippines are 5 to 30% higher 
in prices compared to other countries in Asia. This fact makes it more difficult for 
indigent patients to have access to needed medicines. There are many indigent 
patients who benefited in free hospitalization or consultation for their various 
ailments, but they were left on their own when it comes to procuring their 
prescribed medicine. Consequently, many failed to buy their medicines as 
prescribed and were left not cured of their illnesses.
Under Section 284 of Republic Act No. 7160, otherwise known as the Local 
Government Code, local government units are entitled to a 40% share of the 
national revenue taxes, also known as the Internal Revenue Allotment (IRA), which 
is now referred to as National Tax Allotment (NTA). The NTA of local government 
units is the quick source of funding for free medicines for the benefit of indigent 
patients in their own localities.


The proposed bill seeks to set aside a certain percentage of the NTA annually 
for procurement of medicines for free distribution to indigent patients in their 
respective localities. This proposed measure is a poverty alleviation program to 
increase the access of indigent patients to unrestricted distribution of medicines.
In this light, the immediate passage of this bill is earnestly sought.
INGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No.
)
SENATE
1020
25 AUG-6 A10 54
RECL'IVlD B\
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
REQUIRING LOCAL GOVERNMENT UNITS TO EARMARK PORTION OF 
THEIR NATIONAL TAX ALLOTMENTS FOR FREE MEDICINES TO INDIGENT 
PATIENTS IN THEIR LOCALITIES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Local Government to Earmark a Portion of NTA for Free Medicines.
2 
- It shall be the obligation of all local governments to set aside and earmark a
3 
portion of their National Tax Allotments (NTA) for appropriation for free medicines to
4 
be distributed to the public hospitals, clinics, dispensaries or other outlets to indigent
5 
patients for free in their localities.
6 
Sec. 2. Indigent Patients, defined; How dispensed. - Indigent patients are
7 
those who have no visible means of income or whose income is insufficient for the
8 
subsistence of his or her family as identified by the local social welfare department:
9 
Provided, however, That the local government shall maintain a list confirmed by the
10 
barangay officials concerned where the indigent patient resides and to issue an
11 
identifying document to insure that the free medicines are properly dispensed to
12 
deserving recipients: Provided further, That said hospitals, clinics or dispensaries
13 
shall, as far as practicable, establish their own pharmacy or outlets within their
14 
premises and maintain sufficient stock or quantity of the most common prescribed
15 
medicines in order to immediately provide the free medicines to the indigent
16 
patients.


1 
Sec. 3. Regular Accounting. - All pharmacies or outlets distributing or
2 
dispensing free medicines shall render periodic accounting of such disbursement
3 
duly posted in at least three (3) public bulletin boards specifying the patient's name,
4 
address, doctor prescribing the medicine and the amount or cost of the medicine.
5 
Sec. 4. Acts Constituting Violations of this Act; Penalty. - In addition to the
6 
criminal liability incurred by persons for violating pertinent provisions of the Revised
7 
Penai Code or other special laws, the following acts shall constitute a crime under
8 
this Act.
9 
(a) Preparing a list or certification that a patient is indigent when he is not;
10 
(b) Submitting, preparing or altering any document to make it appear that any
11 
legitimate acquisition, purchase, disbursement or distribution had been
12 
made for free medicines when in fact there is none;
13 
(c) Diverting, concealing or using for other use or purpose, the funds for free
14 
medicines;
15 
(d) Dispensing or distributing the free medicines under this Act other than to
16 
indigent patients;
17 
(e) Selling or disposing of the free medicines;
18 
(f) Marking up or padding the purchase cost of medicines acquired under this
19 
Act; and,
20 
(g) Knowingly purchasing expired medicines or those expiring within one (1)
21 
year from date of purchase.
22 
Those found guilty of committing any of the acts above defined shall be
23 
sentenced to an imprisonment of not less than two (2) years nor more than seven
24 
(7) years.
25 
Sec. 5. Separability Clause. - If any of the sections or provisions of this Act is
26 
held invalid, all other provisions not affected thereby shall remain valid.
27 
Sec. 6. Effectivity Clause. - This Act shall take effect within fifteen (15) days
28 
after its complete publication in at least two (2) newspapers of general circulation.
Approved,