SENATE
SECAR VERY

i

FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session ) 10 wiz ep 9
4 PU!
SENATE wean
s.B. 1215 _ ARCEIVED By.

Introduced by Senator Villar

EXPLANATORY NOTE

The 1987 Constitution recognizes the importance of both the educational
institution and the health sector for the welfare of the Filipino people. Thus, it provides
in:

Article II, Section 17 “The State shall give priority to education, science

and technology, arts, culture, and sports to foster patriotism and

nationalism, accelerate social progress, and promote total human

liberation and development.”

Article 11, Section 15. The State shall protect and promote the right to
health of the people and instill health consciousness among them.

That is why, consistent herewith, is a policy that seeks to endeavor to make
education, essential goods, health and other social services available at an affordable
cost. In connection with these goals of the Constitution, it is best to use the power of
taxation to fund these objectives, through the funding coming from collections made in
pursuance of the Value-Added Tax System.

This legislation will allow for transparency in the question of where the payments

to the Value-Added Taxes goes to, and shall provide a better alternative to giving dole-
outs to the marginalized sectors of the Philippines.

MANNY YILLAR



ue SENATE
1, OFFICE OF TF

FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session 10 WL 12 Piug”

Introduced by Senator Villar

AN ACT
TO REVITALIZE THE PUBLIC EDUCATION AND HEALTH CARE INSTITUTIONS BY
CREATING THE WELFARE OF THE PUBLIC EDUCATION AND HEALTH CARE
CORPORATION AND PROVIDING FUNDS THEREFOR

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

SECTION 1. Title. ~ This Act shall be known as the “Welfare of the Public
Education and Health Care Act of 2010.”

SECTION 2. Declaration of Policies. — It is declared as the policy of the State to
give priority to education, accelerate social progress, and protect and promote the right
of all citizens to quality education at all levels and shall take appropriate steps to make
such education accessible to all. Accessibility of education to all can be equated with
providing of schoo! buildings appropriate for the needs of the student, nutrition that will
cater to their daily needs, and provide the teachers with a fair wage for their daily work,

It is also the policy of the State to 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. It shall also
‘endeavor to provide free medical care to paupers. Availability of medical services to the
citizenry can likewise be equated with the presence of hospital buildings with which to
house patients and the modernization of the equipment with which to aid the patient and
keep up with the needs of the times.

SECTION 3. Welfare Corpoiation. — There is hereby created a body corporate
to be known as the Welfare Corporation (hereinafter referred to as the “Corporation”) to
carry out the purposes of this Act, which shall be vested with both the express and
implied powers of a corporation. The Corporation shall be an independent government
instrumentality with its own charter. It shall establish its principal office in Metro Manila.

SECTION. 4. Powers and Functions of the Welfare Corporation. — The
Corporation shall have the following powers and functions:

(a) To administer the Welfare Program;

(b) To hold and administer the Welfare Fund created under Section 5, according
to the purposes specified under Section 6 of this Act;

(c) To implement all policies and programs of the Department of Education and
Department of Health necessary for the accomplishment of the objectives of
this Act;

1


(d) To adopt, prepare and implement a comprehensive and detailed six-year
development plan during its first fiscal year of operation, containing an
assessment of the existing needs of public elementary and high schools and
embodying a list of projects, including but not limited to those provided in the
Medium-Term Philippine Development Plan (MTPDP), for the rehabilitation
and enhancement of the national educational and school health system;
Provided, that on its third year and every three years thereafter, the Board of
Directors of the Corporation created under Section 8 of this Act shall review
existing development plan taking into consideration the completion, status
and impact of projects.

(e) To apply for, receive and accept grants and donations and other conveyances
by gratuitous title, including funds, materials, equipment and services needed
to accomplish its objectives under this Act;

(f} To do all such other things and to transact ail such business directly or
indirectly necessary, incidental or conducive to the attainment of its purpose;

(g) To exercise the power of eminent domain; and

(h) Generally, to exercise all powers of a corporation under the Corporation Law.

SECTION 5. Welfare Fund. -- For purposes of this Act, the Welfare Program
Fund is hereby established, to consist of ten percent (10%) of the revenue assessed
and collected from the Value-Added Tax System. All proceeds accruing to the Fund
shall be earmarked solely and used exclusively to finance the priority programs stated
under Section 6 herein,

SECTION 6. Priority Uses of Fund. — The Fund shall be used to finance
programs aimed at rehabilitating and modernizing educational and health infrastructure,
raising the quality of instruction, and strengthening delivery of basic services in public
elementary and high schools nationwide. The programs, including but not limited to the
following, shall be implemented in phases to ensure continuity and sustainability,
according to the following schedule of priority:

As to the education sector:

(a) Upgrading of school buildings, classrooms and facilities, and construction of
new ones should the need for the same arise.

(b) The establishment or upgrading of libraries by providing the same with
computers with internet access, purchase of books from competent authors,
science laboratories with modern equipment, all aimed at improving the
competency of the students.

(©) Increasing the remuneration of teachers, and identifying the schools where
additional teachers are required and in connection therewith, hire, train said
teachers.

(d) Upgrading of school clinics and establishing or construction of such clinics
should the need arise, to be provided with at least one (1) registered nurse.

(e) Regular vaccination and dental checkup programs;

(Upgrading of canteens and providing for adequate meals for public
elementary schools consisting of three (3) meals a day.

As to the Medical Sector:

(a) Upgrading of the condition of hospitals, and construction of new buildings
where the need arises, with the aim of increasing the number of hospital
beds available;

(b) The purchase of medical equipment to improve the efficiency of delivering
basic services to the general public especially to pauper patients;

(c) Increasing the remuneration of medical personnel, and identifying the
hospitals where an increase in medical personnel is needed and in
connection therewith, hire.and train said medical personnel;


SECTION 7. Capitalization. — The Corporation shall have an authorized
capitalization of Twenty Million Pesos (P20,000,000.00) as its initial organization and/or
operational expenses; Provided, that such amount as may be necessary for the
Corporation's administration and operation shall be set aside from the Fund; Provided
further, that such amount shall no exceed one percent (1%) of the Fund at any time.

SECTION 8. Board of Directors. ~ Within 30 days from the approval of this Act,
the following shall constitute a Board of Directors for the Corporation:

(a) The Secretary of the Department of Education;

(b) The Secretary of the Department of Health;

(c) Six (6) representatives from State Universities, two each from Luzon,
Visayas, and Mindanao respectively;

(d) Three (3) representatives from Government health institutions;

(e) Two (2) representatives from the private education sector,

(f) Two (2) representatives from the private health sector.

The Board of Directors shall thereafter convene and elect a Chairperson from
among the Board of Directors through a vote of majority.

SECTION 9. Powers and furictions of the Board of Directors. — The Board of
Directors shall be the policy-making body of the Corporation and shall perform the
following functions:

(a) Carry out the purposes of the Corporation as embodied in this Act;

(b) Determine the organizational structure of the Corporation, define the duties
and responsibilities of all officials and employees and adopt a compensation
scheme; Provided, that the Corporation shall engage the services of urban
and regional planners, engineers and management experts;

(c) Adopt an annual budget for and authorize such expenditures by the
Corporation in the interest of its effective administration and operation, in
accordance with applicable rules and regulations; and

(d) Six months from its constitution and every six months thereafter, submit a
report of the operation of the Corporation to the President of the Philippines,
President of the Senate, and Speaker of the House of Representatives.

Within 90 days from the promulgation of this Act, the Corporation shall enact its
rules of procedure. Members of the Board shall receive a per diem for every meeting
actually attended subject to the pertinent budgetary laws, rules and regulations on
compensation, honoraria and allowances; Provided, that the per diem collected per
month does not exceed the equivaleht of four (4) meetings.

SECTION 10. Chairperson. - The Chairperson appointed by the Board shall
have the following duties and responsibilities:

(a) To act as Chair of the Board and Chief Executive Officer of the Corporation;

(b) To execute, administer and implement the policies and measures approved
by the Board;

(c) To direct, supervise the operations and administration of the Corporation;

(d) To represent the Corporation in all dealings with offices, agencies and
instrumentalities of the government and with all persons and entities, public
or private, domestic or foreign;

(e) To direct and supervise the preparation of the agenda for the meeting of the
Board and to submit for the consideration of the Board such policies and
measures as necessary to carry out the purpose and objectives of this Act;
and



(f), To exercise such other powers and functions provided in the by-laws and as
may be vested upon the office by the Board.

The compensation of the Chairperson shall be determined by the Board subject
to the approval by the Secretary of Budget and Management.

The Chairperson shall be appointed for a period of three (3) years, renewable for
another three (3) years upon a two-thirds (2/3) vote of the Board of Directors.

SECTION 11. Education and Health Modernization and Monitoring
Department. — Among the staff departments that will be established by the Corporation
shall be the Education and Health Monitoring Department which shall regularly perform
the following duties and functions, in coordination with the appropriate provincial State
Universities, Colleges, and medical institutions:

(a) conduct on-site inspections on the projects to ensure the project's adequacy
and responsiveness to existing sector needs;

(b) review and evaluation of the impact of the programs on the access to and
quality of facilities for public elementary and high schools, and public health
institutions; and .

An annual report on the results of these inspections, review and evaluation shall
be submitted to the Board for its policy formulation.

SECTION 12. Audit. - The Commission on Audit shall appoint a representative
who shall be the full time auditor of the Corporation, and such personnel as may be
necessary to assist said representative in the performance of duty.

SECTION 13. Report to Congress. - The Corporation shall submit to the
Department of Education and to Congress a detailed quarterly report on the funds
allocated, indicating the amount released, obligated and disbursed under this Act,
including but not limited to funds for the construction or repair and reconstruction of
infrastructure projects, the list of contractors and projects being financed, and the
accomplishments for the expended appropriation, including the percentage of
completion.

SECTION 14. Congressional Oversight Committee. — There is hereby created
a Congressional Oversight Committee, which shall be composed of three
representatives each from the Senate and the House of Representatives, to be
appointed by the Senate President and the Speaker of the House of Representatives, to
monitor the implementation of this Act. The Committee shall conduct an annual review
of this Act in aid of legislation.

SECTION 15. Injunction and Restraining Order. — Projects under the Welfare
Fund are urgent and necessary. Their implementation shall not be restrained or
enjoined except by an order issued by the Supreme Court of the Philippines.

SECTION 16. Separability Clause. — If any provision of this Act or any part
hereof be declared unconstitutional or invalid, the remainder of this Act or any provision
not affected thereby shall remain in force and effect.

SECTION 47. Repealing Clause. — All laws, orders, proclamations, rules and
regulations, or part thereof, which are inconsistent with any provision of this Act are
hereby repealed or modified accordingly.


SECTION 18. Effectivity. - This Act shall take effect after fifteen (15) days
following its publication in the Official Gazette or in at least two newspapers of general
circulation.

Approved.