Republic of the Philippines /
HOUSE OF REPRESENTATIVES —/ >
Quezon City {

SIXTEENTH (167!) CONGRESS \
First Regular Session

House Bill No, 2813

Introduced by Hon. Joseph Gilbert F. Violago

EXPLANATORY NOTE

Article XIII, Section 11 of the 1987 Constitution states:

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

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

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

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

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

Also, consider that diabetes was the 9th leading cause of death from 1999 to 2002, and that the number
of deaths due to diabetes grew the fastest among all diseases between 1999 and 2005, In 2009, diabetes was
already recorded by the DOH as sixth leading cause of deaths in the country. Globally, the Philippines ranks
10th among countries with the highest diabetes incidence,

With the establishment of the NDCE, 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 fa
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 attenclant decrease in cost of diabetes care,

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

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

a

HON. JOSEPH F, VIOLAGO
Representative
2NP District, Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SIXTEENTH CONGRESS
First Regular Session
2813

House Bill No.

Introduced by: Hon. Joseph Gilbert F. Violago

ANACT
CREATING THE NATIONAL DIABETES CENTER AND FOUNDATION
AND FOR OTHER PURPOSES

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

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

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

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

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

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

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

(e) To assist universities, hospitals and research institutions in their studies
on diabetes and allied diseases and other related fields, to encourage and grant


scholarships for advanced training and specialization in medical care and
management in diabetes and related fields and to support and finance educational
programs of value to public health; and

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

Sec. 3. Powers and Functions.—For the attainment and/or furtherance of the above-
enumerated purposes and objectives, the NDCF as a body corporate acting through its Board of
Trustees, shall have the following powers and functions in addition to those provided for in the
other sections of this Decree:

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

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

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

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

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

(f) To invite diabetes specialists and similar experts in the various medical
fields to train the personnel or trainees or residents of the NDCF Center, and to
also support the trainings, seminars, conferences and conventions of its medical
personnel in research and medical institutes or universities, be it local or
inteational 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

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

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

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

Sec. 5. Power and Functions of the Board.--The Board shall have the following powers
and functions:

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

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

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

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

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

(f) Upon the recommendation of the President of the NDCF, to determine
and organize its organizational and administrative structure or pattern, and to
establish and fix, review, revise and adjust the appropriate compensation scheme
its officers and employees, with reasonable allowances, bonuses and other
incentives as may be recommended by the President,

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

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

Sec. 6. 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. 7. The President, His Term and Remuneration —The President of the NDCF shall
be appointed by, and shall serve at the pleasure of, the President of the Philippines. The salary of
the President of the NDCF shall be fixed by the Board, subject to the approval of the President of
the Philippines.


Sec. 8. 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 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 may delegate some of his administrative
responsibilities and duties to other officers of the NDCF;

(d) To execute, on behalf of the NDCF, all contracts and agreements which the it
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 all 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 by the Board.

Section 9. 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 10. 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 11. 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, contributionsm 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 12. Appointment, Promotion; Terms and Conditions of Employment —The
NDCF and its officers and employees shall not be covered by the Civil Service Law, rules and
regulations, and by the Office of the Compensation and Position Classification. The officers and
employees of the NDCF shall be appointed or promoted pursuant to such management policies
and/or appropriate merit and fitness system as may be adopted by the Board

Section 13. Government Contribution.-The amount of ‘Ten Billion Pesos
(P10,000,000,000.00) is hereby appropriated from the Philippine Amusement and Gaming


Corporation (PAGCOR) to defray the initial operational expenses of the NDCF. Thereafter, the
necessary amount to support the continued operation and maintenance of the NDCF shall be
included in the General Appropriations Act.

Section 14. Annual Report—The NDCF shall render to the President of the Philippines
an annual report on its operations and accomplishments.

Section 15. Applicability of the Corporation Law—The provisions of the general
corporation law, insofar as they are not inconsistent with the provisions of this Act and with the
purposes and objectives for which the NDCF is formed, shall apply to the NDCF.

Sec. 16. 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.

Sec. 17. Effectivity.-This Act shall take effect immediately.

Approved