Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS.
First Regular Session

House Bill No. 682

Introduced by REPRESENTATIVE MICAELA S. VIOLAGO

EXPLANATORY NOTE

Article XIII, Section 11 of the 1987 Constitution states:

"The State shall adopt an integrated and comprehensive approach to health
development which shall endeavor to make essential goods, health and other social
services available to all the people at affordable cost. There shall be priority for the
needs of the underprivileged, sick, elderly, disabled, women and children. The State
shall endeavor to provide free medical care to paupers."

Further, the State is also mandated to undertake appropriate manpower
* development and health research, responsive to the country's health needs and
problems.

This proposed bill which establishes the National Diabetes Center and
Foundation (NDCF) is in accordance with these State policies, as it seeks to provide
quality, efficacious and accessible medical care in the field of diabetes which affects
9.7 percent of our country's adult Population alone.

The abovesaid statistic will double up if we add the 12.5% of Filipinos at risk
of diabetes with impaired glucose tolerance. Hence, when combined, we have 1 out
of every five Filipino adults or approximately 11 million that has either pre-diabetes or
diabetes. This gains more significance when we consider the steady rise of Pinoys
afflicted with this disease by 2030 which is estimated to be more than 7 million—
undoubtedly a serious health problem for the nation.

Closely associated with diabetes are also long-term complications like
blindness, heart and blood vessel disease, kidney failure, nerve damage and stroke.
It also affects many pregnant women.

Also, consider that diabetes was the 9th leading cause of death from 1999 to
2002, and that the number of deaths due to diabetes grew the fastest among all
diseases between 1999 and 2005. In 2009, diabetes was already recorded by the


DOH as sixth leading cause of deaths in the country. Globally, the Philippines ranks
10th among countries with the highest diabetes incidence.

With the establishment of the NDCF, we will also be assured of more relevant
health research and information that would be most crucial to the continuing
education of our diabetics, their families and the would-be diabetics especially in the
health care management of the disease to improve not just the survival rate but also
increased rates of recovery and return to normal life and the attendant decrease in
cost of diabetes care.

Verily, we must all recognize NOW that there is an urgent need to provide,
support and maintain this specialized and integrated medical services institution for
people suffering from diabetes, and the needed medical and scientific research and
‘education of our people on this disease, as well as its closely-related diseases, to
positively contribute to its effective control, prevention and cure. Corollarily, there
also exists a concomitant imperative to train medical experts and specialists and
other medical and technical personnel in this field.

Considering the foregoing reasons and stressing again that diabetes
incidence in the country will get worse in the next years to come, the approval of this
landmark legislation is hereby earnestly sought.

ICAELA S. Vi GO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS,
First Regular Session

House Bill No.__ 682 __

Introduced by Representative MICAELA S. VIOLAGO

AN ACT
CREATING THE NATIONAL DIABETES CENTER AND FOUNDATION
AND FOR OTHER PURPOSES.

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

Section 1. State Policy. - It is the policy of the State to secure the well-being
of the people by providing them specialized health services and to also undertake
appropriate the necessary medical manpower development and health care research
responsive to the country's health needs and problems. Towards this end, it is the
(Primary concern of government to assist and provide material and financial support
in the establishment and maintenance of specialty hospitals for the prevention and
treatment of leading diseases in the country and to train medical and technical
personnel for such specialized medical service and research.

Section 2. Creation of the National Diabetes Center and Foundation. -
There is hereby created a body corporate to be known as the National Diabetes
Center and Foundation (NDCF) which shall serve as the lead tertiary-level care
center in the treatment of diabetes. The NDCF shall have its principal office in Metro
Manila, and may have such branch offices, hospitals, clinics or subsidiaries in other
areas in the Philippines as it may deem proper and necessary. It shall be under the
Department of Health (DOH).

Sec. 3. Purpose and Objectives. - The NDCF shall have the following
purposes and objectives:

(a) To construct, establish, equip, maintain, administer and operate
such integrated medical institution and facilities which shall specialize in the
prevention, diagnosis, treatment and care of diabetes and allied diseases;

(b) To promote, encourage and engage in medical and scientific
research on the prevention and treatment of diabetes and allied diseases, as
well as related activities, including sponsorship and, conduct of relevant
conferences, fora, conventions, seminars, workshops and training programs;


(c) To stimulate and conduct researches and investigations on the
biological, demographic, social, economic, eugenic, physiological aspects of
diabetes and their control; and gather, compile, and publish the findings of
such researches for public dissemination;

(d) To encourage, undertake and assist in the education and training of
physicians, nurses, health officers, medical technologists, social workers and
medical and technical personnel on the practical and scientific implementation
of health care services to diabetic patients;

(e) To assist universities, hospitals and research institutions in their
‘studies on diabetes and allied diseases and other related fields, to encourage
and grant scholarships for advanced training and specialization in medical
care and management in diabetes and related fields and to support and
finance educational programs of value to public health; and

(f) To encourage the formation of other organizations on the national,
provincial, city and/or local levels, and to coordinate the various efforts and
activities of such organization for the purpose of achieving a more effective
approach to the common problem relative to the purposes and objectives
enumerated herein.

Sec. 4. Powers and Functions. - For the attainment and/or furtherance of
the above-enumerated purposes and objectives, the NDCF as a body corporate
acting through its Board of Trustees, shall have the following powers and functions in
addition to those provided for in the other sections of this Decree:

(a) To acquire, own, hold, use, lease, grant, mortgage, pledge, sell,
assign, convey, transfer, exchange, dispose or otherwise deal with, real
and/or personal properties of every kind and nature, including shares of stock,
bonds, debentures, notes, securities and other evidences of indebtedness or
obligations of other corporations, whether domestic or foreign, and whether
government or private;

(b) To solicit and receive donations, endowments and funds in the form
of contributions, whether in cash or in kind, from both the public and private
sectors;

(c) To award, enter into, ‘make, execute, perform and carry out
domestic or foreign contracts of whatever kind and nature:

(d) To open accounts in banks and other financial institutions, and to
disburse such funds or invest the same as the Board may direct to accomplish
or advance the purposes or interest of the NDCF, and to obtain loans, borrow
funds and/or arrange financing or credit assistance of whatever kind and
nature from all sources, whether domestic or foreign and whether government
or private;

(e) To levy, assess and collect such fees, charges and assessments as
may be necessary or proper to support, finance and maintain its operations;

(f) To invite diabetes specialists and similar experts in the various
medical fields to train the personnel or trainees or residents of the NDCF
Center, and to also support the trainings, seminars, conferences and


conventions of its medical personnel in research and medical institutes or
universities, be it local or international as the Board may deem necessary to
accomplish the purposes and objectives of the NDCF;

(g)To adopt and use a corporate seal;
(h) To sue and be sued in its corporate name;

(i) To adopt its by-laws, rules and regulations not inconsistent with law
and the provisions hereof to govern the administration and operation of the
affairs of the Philippine Heart Center; and

() To exercise such other powers and functions as may be necessary,
related or incidental or to carry out the purposes and objectives of this Act.

Sec. 5. The Board of Trustees; Composition; Term. and Compensation. -
The NDCF shall be governed, and its activities and properties shall be directed,
controlled and managed, by a Board of Trustees, hereinafter referred to as the
Board, which shall be composed of a Chairman and four (4) members, all of whom
shall be appointed by the President of the Philippines. The President of the NDCF
shall be appointed from among the members of the Board.

Except the President of the NDCF, the members of the Board shall serve for a
term of three (3) years, with a right to hold-over until their respective successors
‘shall have been duly appointed and qualified. The President of the Philippines may,
however, remove any member of the Board for cause. Whenever a vacancy shall
‘occur in the Board, the person appointed to fill the vacancy shall hold office for the
unexpired term of the member replaced.

The President and each member of the Board shall receive compensation in
accordance with current standards and as may be determined by the Department of
. Health (DOH).

Sec. 6. Power and Functions of the Board. - The Board shall have the
following powers and functions:

(a) To formulate policies, guidelines and programs to effectively
implement and carry out the purposes and objectives of this Decree;

(b) To prescribe, review and revise the amount of the fees, charges.
and assessments levied and collected for the support and maintenance of the
operations of the NDCF;

(c) To control the management, operation and administration of NDCF;

(d) To promulgate such rules and regulations as may be necessary or
proper for the effective exercise of power and functions as well as the
discharge of the duties, responsibilities of the NDCF, its officers and
employees;

(e) To authorize such expenditures of the NDCF as may be necessary
or proper for the effective management, operation and administration of the
NDCF;

(f) Upon the recommendation of the President of the NDCF, to
determine and organize its organizational and administrative structure or


pattern, and to establish and fix, review, revise and adjust the appropriate
compensation scheme its officers and employees, with reasonable
allowances, bonuses and other incentives as may be recommended by the
President;

(g) To adopt the annual and supplemental budget of receipts and
expenditures of the NDCF;

(h) To appoint, remove, suspend or otherwise discipline the Executive
Vice-President and other officers of the NDCF occupying executive and senior
management positions;

Sec. 7. Officers. - The Board shall determine the officers of the NDCF who
shall be appointed by the President of the NDCF, subject to confirmation by the
Board. The NDCF shall have an Executive Vice-President and as many Directors as
may be required for its effective operation.

Sec. 8. The President, His Term and Remuneration. -The President of the
NDCF shall be appointed by, and shall serve at the pleasure of, the President of the
Philippines. The salary of the President of the NDCF shall be fixed by the Board,
subject to the approval of the President of the Philippines.

Sec. 9. Powers and Duties of the President. - The President of the NDCF
shall also be concurrent Chief Executive Officer. He/She shall exercise the following
powers and duties:

(a) To execute the policies, guidelines and programs approved by the Board,
and to be responsible for the efficient discharge of management and
operational functions;

(b) To submit for the consideration and approval of the Board proposed
measures, policies, guidelines and programs as he/she may deem necessary
or proper for the effective implementation of the purposes and objectives of
this Decree;

(c) To direct and supervise the management, operation and administration of
the NDCF, and, for this purpose, he/she may delegate some of his/her
administrative responsibilities and duties to other officers of the NDCF;

(d) To execute, on behalf of the NDCF, all contracts and agreements which
he/she may enter into, and to execute, accomplish and deliver any and all
documents relative to such contracts and agreements;

(e) To represent the NDCF in alt dealing with other offices, agencies and
instrumentalities of the Government, and all other persons or entities, whether
domestic or foreign and whether government or private;

(f) To appoint, promote, transfer, remove, suspend or otherwise discipline the
officers and employees of the NDCF, except those appointed by the Board;

(g) To exercise such other powers and perform such duties as may be vested
or reposed upon him/her by the Board.

Section 10. Assistance from the Government. - The NDCF may call upon
any department, bureau, office, agency or instrumentality of the Government,


including government-owned or controlled corporations, for such assistance as it
may need in the pursuit of the purposes and objectives of this Act

Section 11. Donations to the Foundation. - The NDCF is hereby authorized
to solicit and receive donations, grants, contributions, gifts or endowments from all
sources whether foreign or domestic, and whether government or private, without the
need of securing a permit, approval or registration from any government agency.

Section 12. Exemption from Fees, Duties and Taxes. - The NDCF is
hereby declared exempt from all income and all other internal revenue taxes, tariff
and customs duties and all other kinds of taxes, fees, charges and assessments
levied by the Government and its political subdivisions agencies and
instrumentalities. Notwithstanding any provision of law to the contrary, all donations,
grants, contributions, gifts or endowments which may be made by entities or persons
to the NDCF shall be exempt from income and gift taxes, and the same shall be
further deductible in full for purposes of computing the maximum amount deductible
under the National Internal Revenue Code, as amended.

Section 13. Appointment, Promotion; Terms and Conditions of
Employment. — The NDCF and its officers and employees shall not be covered by
the Civil Service Law, rules and regulations, and by the Office of the Compensation
and Position Classification. The officers and employees of the NDCF shall be
appointed or promoted pursuant to such management policies and/or appropriate
merit and fitness system as may be adopted by the Board

Section 14. Government Contribution. — The amount of Ten Billion Pesos
(P10,000,000,000.00) is hereby appropriated from the Philippine Amusement and
Gaming Corporation (PAGCOR) to defray the initial operational expenses of the
NDCF. Thereafter, the necessary amount to support the continued operation and
maintenance of the NDCF shall be included in the General Appropriations Act.

Section 15. Annual Report. — The NDCF shall render to the President of the
Philippines an annual report on its operations and accomplishments.

Section 16. Applicability of the Corporation Law. — The provisions of the
general corporation law, insofar as they are not inconsistent with the provisions of
this Act and with the purposes and objectives for which the NDCF is formed, shall
apply to the NDCF ;

Section 17. Separability Clause. — The provisions of this Decree are hereby
declared to be separable, and if any provision or section of this Decree or application
thereof to any person or circumstance should for any reason be held invalid or
unconstitutional, such invalidity or unconstitutionality shall not affect the other
provisions or sections of this Decree.

Section 18. Effectivity. — This Act shall take effect immediately.

Approved,