Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.3961

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

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
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 sci ic
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).

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).”

r. 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
“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,
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 Cannabi 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.


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, Northem 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


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.

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.”

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”.

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 Bil

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.”

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.

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.

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
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)

To Develop a Comprehensive Five (5) Year Medical Cannabis Development
Program

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
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

14


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.

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.

lll. 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.

ay 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.


Vi.

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
ina restricted zone that will be the initial legal medical cannabis farm(s);
lab and processing facilities in the Philippines.

To Organize And Conduct Monitoring/ Training

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.

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.

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

16


and dissertations, product catalogs, laws and regulations on the cannabis
industry in the Philippines and other countries.

Vil. 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.
J 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.

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.

ay. 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.

The foregoing considered and in recognition of the merits of the Bill, the
approval hereof is earnestly sought

L 4

LUIS RAY! “URAY” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3961
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

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;

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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 wnen 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

20


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 |
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 “PhiICADA”.

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 I
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

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Philippine Cannabis Development Authority hereinafter referred to as the
“PhiICADA’ 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.

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, PhiICADA through its Board of
Directors as hereinafter constituted, is hereby vested with the following
powers and functions:

a)

b)

°)

4)

e)

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;

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;

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;

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;

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.

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f)  Toendorse 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.

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 PhiICADA 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

23


licensed physicians or medical practitioners and/or through
accredited hospital or clinics, subject to reporting and monitoring
system prescribed by PhilCADA;

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 PhiICADA shall directly undertake and/or to cause
to be cultivated or grown for and in its behalf by selected State
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, ie. 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.

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):

To import for resale in the Philippines to authorized users from
processors/manufacturers in foreign countries that comply with

24


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
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 PhiiCADA
‘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)

Secretary of the Department of Health (DOH)

Secretary of the Department of Science and Technology (DOST)

Secretary of the Department of Agriculture (DA)

Secretary of the Department of Trade and Industry (DT!)

Secretary of the Department of Environment and Natural Resources

(DENR)

7. Secretary of the Department of Finance (DOF)

OMRON

The President of the Philippines shall appoint the Chairman and the Vice-
Chairman of the Board of Directors of PhiICADA. 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.

25


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 shalll have terms
of office of three (3) years.

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

26


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.

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
(1%) year of its operation;

(b.) the amount of Three Hundred Million Pesos (Php300,000,000.00) for its
second (2"4) 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 PhiiCADA
and/or by duly approved supplemental resolution, revision or amendment of the rules

27


and regulations of the Board of Directors of PhilCADA, it is prohibited and hereby
declared unlawful for any person or entity:

1. Toimport 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;

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.

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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, PhiICADA 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 PhiiCADA
or reverted back to other regulatory agencies of the national government. Otherwise,
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,

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