Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No. 2763

Introduced by Representative JOSEPH GILBERT F. VIOLAGO

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

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

section 1. tate Policy. -Itis the policy of the State to secure the well-being
of the people by providing them specialized heatth services and to also undertake
Sppropriate the necessary medical manpower development and health care
vecearch responsive to the country's health needs and problems, Towards this
tnd, itis the primary concern of government to assist and provide material and
francial support in the establishment and maintenance of specialty hospitals for
the prevention and treatment of leading diseases in the country and to train
ire dical 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).

See. 3. Purpose and Objectives. - The NOCF shall have the following purposes
and objectives:


(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)_ Toassist 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 cof other organizations on the national,
provincial, city and/or local levels, and to coordinate the various efforts and
vctivities 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 NOCF, 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 NOCF
Center, and to also support the trainings, seminar, 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

(j) 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 NOCF 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
aterm 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 contro! 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 NOCF, 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
NDCFe,

(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 shail be appointed by, and shall serve at the pleasure of, the President of
the Philippines. The salary of the President of the NOCF 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 NOCF 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 (P
10,000,000,000.00) 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 shail 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 NOCF 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,


Republic of the Philippines és RI RN

HOUSE OF REPRESENTATIVES hy? E-Filed
Quezon City RECEIVED
July 29, 2022
NINETEENTH CONGRESS THe paras 22pm

First Regular Session

House Bill No. 2763

Introduced by REPRESENTATIVE JOSEPH GILBERT F. VIOLAGO.

EXPLANATORY NOTE

Article Xill, 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. Corallarily, 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.

JOSEPH'GILBERT F. VIOLAGO