Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _3527

Introduced by: Rep. Keith Micah “Atty. Mike” D.L. Tan
AN ACT
REQUIRING LOCAL GOVERNMENT UNITS TO EARMARK AT LEAST FIFTEEN
PERCENT (15%) OF THEIR NATIONAL TAX ALLOTMENT SHARE FOR HEALTH
SERVICES, AMENDING FOR THE PURPOSE SECTION 287 OF REPUBLIC ACT NO.
7160, AS AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE
OF 1991

EXPLANATORY NOTE

This bill seeks to amend Section 287 of the Local Government Code (LGC) of
1991 to ensure the appropriation for health services in all provinces, cities,
municipalities, and barangays. The proposed appropriation of no less than fifteen
percent (15%) of local government units’ national tax allotment share for health
services shall be on top of whatever is allotted for health services under the existing
development projects as provided under the LGC and the Special Health Fund (SHF),
a component of the Universal Health Care Act.

‘The proposal is grounded on the fundamental policies outlined under Republic
Act No. 11223, otherwise known as the “Universal Health Care (UHC) Act”, which
adopts (1) an integrated and comprehensive approach to ensure that all Filipinos are
health literate, provided with healthy living conditions, and protected from hazards
and risks that could affect their health; (2) a health care model that provides all
Filipinos access to a comprehensive set of quality and cost-effective, promotive,
preventive, curative, rehabilitative and palliative health services without causing
financial hardship, and prioritizes the needs of the population who cannot afford such
services; (3) a framework that fosters a whole-of-system, whole-of-government, and
whole-of-society approach in the development, implementation, monitoring, and
evaluation of health policies, programs and plans; and (4) people-oriented approach
for the delivery of health services that is centered on people's needs and well-being,
and cognizant of the differences in culture, values, and beliefs.

It is premised on the belief that along with local development initiatives, the
provision of quality, accessible, and relevant health services is enormously important,
a fact that the country and maybe the rest of the world, has now come to realize, albeit
belatedly, amid the COVID-19 pandemic, which has brought into fore the important
role of LGUs in the delivery of health services.

The pandemic has underscored the important lesson that LGUs must be at the
front lines of UHC implementation inasmuch as the law “requires local leaders who


recognize that health is not just one of their concerns but is in fact a strategic concern
that has wide-reaching impact on stubborn societal issue.”!

The bill is also a corollary of the recent Mandanas-Garcia Ruling where the
Supreme Court ruled that the “just share” of LGUs include all national taxes and not
just the national internal revenue taxes, but also customs duties and others.
Consequently, in the next cycle of the recomputation of the IRA in 2022, the LGU
budget, based on preliminary estimates, is expected to increase by 30.73% or
equivalent to 1% of the GDP.2

It is for this reason that the proposed measure by the Department of Budget
and Management (DBM) to mitigate the impact is ‘to gradually “redevolve” services
to LGUs. Starting 2020 budget, DBM has been working with NGAs in developing an
action plan up to 2022 for the redevolution of services to LGUs.?

Given that LGUs must perforce undertake necessary action to prepare for the
greater role and responsibilities of providing health services that they are expected
to assume in the context of the Mandanas-Garcia ruling, this measure is being filed in
order to protect and promote the right to health of the people and instill health
consciousness among them.

In view of the foregoing, the immediate passage of this measure is earnestly

sought.

fcah “Atty. Mike” D.L. Tan
/ath District, Quezon

Keith

incent E.R. Festin, Blueboard, Business World, April 10, 2019
“gus/) Accessed on 13 February 2021

“The UHC Law and LGUs,
r "

2 Department of Health Budget Briefer 2021

ia.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _3527

Introduced by: Rep. Keith Micah “Atty. Mike” D.L. Tan

AN ACT
REQUIRING LOCAL GOVERNMENT UNITS TO EARMARK AT LEAST FIFTEEN
PERCENT (15%) OF THEIR NATIONAL TAX ALLOTMENT SHARE FOR HEALTH
SERVICES, AMENDING FOR THE PURPOSE SECTION 287 OF REPUBLIC ACT NO.
7160, AS AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE
OF 1991

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

SECTION 1. Section 287 of Republic Act No. 7160, as amended, otherwise
known as the Local Government Code of 1991, is hereby amended to read as follows:

"SEC. 287. Local Development Projects AND HEALTH SERVICES. - Each
local government unit shall appropriate in its annual budget no less than twenty
percent (20%) AND FIFTEEN PERCENT (15%) of its annual [internal revenue]
NATIONAL TAX allotment for development projects AND HEALTH SERVICES,
RESPECTIVELY. Copies of the development plans AND HEALTH PROGRAMS,
INCLUDING PROVISION OF FREE MEDICINES TO INDIGENT PATIENTS, of local
government units shall be furnished the Department of the Interior and Local
Government (DILG) AND THE DEPARTMENT OF HEALTH (DOH).

HEALTH PROGRAMS OF LOCAL GOVERNMENT UNITS SHALL BE
APPROVED BY THE LOCAL HEALTH BOARDS IN ACCORDANCE WITH THE
STANDARDS AND CRITERIA SET BY THE DOH PURSUANT TO PERTINENT
PROVISIONS OF REPUBLIC ACT NO. 11223, OTHERWISE KNOWN AS THE
UNIVERSAL HEALTH CARE Act"

SEC. 2. Within sixty (60) days from the effectivity of this Act, the Department
of Finance (DOF), Department of Budget and Management (DBM), Department of
Health (DOH) and the Department of the Interior and Local Government (DILG) shall
jointly promulgate the necessary rules and regulations for the implementation of this
Act.

SEC. 3. All laws, decrees, executive orders and rules and regulations
inconsistent with the provisions of this Act are hereby amended, repealed or modified
accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,