HOUSE OF REPRESENTATIVES
-.. RECEIVED

aes Q JUN 2015

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

REGISTRATION UNIT
BILLS AND INDEX SERVICE

HOUSE BILL NO. 609

Introduced by HON. SANDRA Y. ERIGUEL, M.D.

EXPLANATORY NOTE

This Bill, which was previously filed in the 16" Congress and approved in the
committee level, seeks to establish the Philippine Blood Disease and Transfusion Center
(Blood Center) which shall offer comprehensive care for patients with blood disorders and
provide transfusion services to the Filipino people.

The Blood Center is envisioned to provide the Filipino people with the latest and best
in the diagnosis, management, and treatment of hematologic disorders. It shall embark on
research regarding hematologic disorders and shall serve as a referral laboratory center for
all hematologic diseases.

Republic Act No. 7719 or the National Blood Services Act of 1994, and the
consequent strengthening of voluntary blood services nationwide, came on the heels of
unprecedented need for blood and blood products secondary to inevitable epidemiologic
shift towards rising incidence of dengue fever and its hemorrhagic forms, the increasing
threat of HIV, and other blood borne infections. RA 7719 is aligned with the national goal of
drastically reducing maternal deaths through the assurance of adequate supply of blood.

The creation of the Blood Center will complement RA 7719. It will be a government
corporate institution under the direct supervision of the Department of Health for purposes
of policy direction and control.

In view of the foregoing, the passage of this Bill is earnestly sought.

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SANDRA Y. ERIGUEL, M.D.
Second District, La Union


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House BILLNo,_ 609

Introduced by HON. SANDRA Y. ERIGUEL, M.D.

AN ACT
ESTABLISHING THE PHILIPPINE BLOOD DISEASE AND TRANSFUSION
CENTER, DEFINING ITS OBJECTIVES, POWERS AND FUNCTIONS, AND
APPROPRIATING FUNDS THEREFOR

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

assembled:

SECTION 1. Short Title. — This Act shall be known as the “Philippine Blood

Disease and Transfusion Center Act.”

SEC. 2. Definition of Terms. — As used in this Act, the following terms shall be defined

as follows:

a. Apheresis Facility shall refer to a blood service facility where blood collection
procedure is done in which whole blood is removed, a selected component separated,
and the remainder returned to the donor.

b. Blood shall refer to the human blood for transfusion

c. Blood Center shall refer to the Philippine Blood Disease and Transfusion Center
established pursuant to this Act.

d. Blood Component shall refer, but not limited, to whole blood, red cells, granulocytes,
plasma, platelets, cryoprecipitate and cryosupemate prepared in the Blood Center.

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- Blood Disease shall refer to a blood condition that involves problems with the red

blood cells, white blood cells, platelets, blood vessels, bone marrow, lymph nodes,
spleen, or other proteins involved in bleeding and clotting (hemostasis and
thrombosis). Blood diseases and blood disorders are used interchangeably in this Act.
Blood Product shall refer to a therapeutic substance derived from whole blood or
plasma.

Blood Transfusion shall refer to the process of transferring blood or blood-based
products from one person into the circulatory system of another.

Hematology shall refer to the branch of medicine that is concerned with the study of
blood, the blood-forming organs and blood diseases.

Voluntary Blood Donor shall refer to a donor who gives blood freely and voluntarily

without any form of payment.

SEC. 3. Mandate. — There is hereby established a Philippine Blood Disease and

Transfusion Center, hereinafter referred to as the Blood Center, a government corporate

entity that will offer comprehensive care for patients with blood diseases, including blood

transfusion services, for public welfare. The Blood Center shall also undertake teaching

programs and research activities to successfully accomplish its mandate.

SEC. 4. Purposes and Objectives. — The Blood Center shall have the following

purposes and objectives:

a.

To construct, establish, operate and maintain a specialty hospital, with at least two
hundred fifty (250) bed capacity, which shall offer comprehensive care for patients
with blood diseases;

To establish and operate a blood transfusion center and a state-of-the-art hematology
laboratory (which should be able to offer more services than a regular medical center),
including a molecular laboratory for public welfare;

‘To establish and operate a Hematopoietic Stem Cell transplant program and donor
registry;

To collect blood from qualified voluntary blood donors, and process whole blood into
blood components;

To ensure the safety, as well as the adequate supply. of blood and blood products

delivered to hospitals and other health facilities;

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To promote, encourage and engage in medical and scientific research on the

prevention and treatment of blood diseases, and on the proper operation of blood bank

technology and blood transfusion services to ensure the safety of both blood donors
and donees;

g. To gather, compile and publish the findings of its medical and scientific researches;

h. To conduct studies and develop teaching programs, in collaboration with universities,
hospitals and/or research institutions, on the prevention and treatment of blood
diseases; encourage and grant scholarships for advanced training and specialization in
hematology; and support educational programs of value to general public health;

i, To finance, sponsor, hold or participate in congresses, conventions, conferences,
seminars, workshops and training programs on the prevention and treatment of blood
diseases; and

j. To encourage and assist in the education and training of physicians, nurses, health

officers, social workers and medical and technical personnel in the practical and

scientific implementation of services to patients with blood diseases.

Sec. 5. Powers and Functions. — The Blood Center shall have the following powers

and functions:

a. To have the attribute of perpetual succession and shall be vested with the powers of a
corporation;

b. To adopt and use a corporate seal which shall be a matter of judicial notice;

c. To enter into contracts with any person or entity, whether public or private, domestic

or foreig

d. To own, possess, and/or acquire assets, real or personal, or any interest therein, and
encumber or otherwise dispose the same, under any mode of encumbrance or
conveyance, as it may deem proper and necessary in the conduct of its business;

e. To invest its excess funds, subject to applicable laws, rules and regulations, in any
activity related to the Blood Center, as well as in any bonds or securities issued and
guaranteed by the Government of the Philippines:

f. To collect reasonable fees from the public for its services;

g. To solicit and accept any gifts, contributions, endowments, grants, bequests and
devices of any kind of real or personal property which are necessary and proper for
the attainment of the purpose of the hospital; and

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h. To perform such acts and exercise such functions as may be necessary and proper for

the attainment of the purposes and objectives herein specified.

Sec. 6. Board of Tustees. — The affairs and business of the Blood Center shall be
directed, its properties managed, and its corporate powers exercised, unless otherwise
provided in this Charter, by its own Board of Trustees, which shall be composed of seven (7)

members, as follows:

a. The Secretary of the Department of Health as Chairman of the Board, or his duly
authorized representative;

b. The Department of Health Undersecretary in charge of supervising specialty
hospitals;

c. One (1) member from the private sector, preferably with experience in finance,
administration or management;

d. One (1) representative who is an expert in hematology;

e. One (1) representative who is an expert in blood transfusion;

£ One (1) representative from an NGO involved in health advocacy; and

g. The Blood Center Executive Director.

‘The terms of office, manner of appointment of the trustees and other matters pertaining to the
governance of the Blood Center shall be determined in accordance with the pertinent
provisions of RA 10149, otherwise known as the “GOCC Governance Act of 2011”.

Sec. 7. Powers and Functions of the Board. ~ The Board of Trustees, which shall be
the policy-making body of the Blood Center, shall have the following powers and functions:

a. Set the policies and direction of the Blood Center in order to accomplish its mandate:

b. Adopt a set of by-laws, rules, regulations, guidelines and procedures consistent with
existing laws and the provisions hereof to govern the administration and operation of
the Blood Center;

c. Establish the organizational structure of the Blood Center, defines the duties and
responsibilities of its officials and employees, and adopt a compensation and benefit
scheme, subject to the pertinent provisions of RA 10149;


d. Establish and maintain professional and technical educational systems for the
sustained development of the necessary manpower to manage and operate its affairs
and business;

e. Authorize the expenditures of the Blood Center as may be necessary or proper for its
efficient and effective management, operation and administration;

f. Send the personnel of the Blood Center to research institutes, medical institutes or
universities for advance training or observation and to attend international or regional
conventions, conferences, congresses or seminars as the Board of trustees may deem
necessary to accomplish the purposes and objectives of the Blood Center;

g. Enter into such agreements and arrangements with other medical or similar
institutions, domestic or foreign, as it deem desirable toward promoting the purposes
and objectives of the Blood Center,

h. Appoint, remove, suspend or otherwise discipline the Executive Director and other
officers of the Blood Center occupying executive and senior management positions;
and

i, Undertake such other acts as may be necessary for or incidental to the

accomplishment of the purposes and objectives of the Blood Center.

Sec. 8. Executive Director of the Blood Center. — The Blood Center shall be headed
by an Executive Director, whose rank and emoluments shall be approved by the Board,
taking into account the prevailing practice in other specialty hospitals, and subject to the
pertinent guidelines issued by the Governance Commission for GOCCs (GCG). The

Executive Director shall have the following duties and responsibilities:

Direct and supervise the operations and administration of the Blood Center,

b. Execute, administer and implement the policies and measures approved by the Board;

c. Prepare the agenda for the meetings of the Board, and to submit for consideration of
the Board such policies and measures as he/she believe(s) necessary to carry out the
purposes and objectives of this Act.

d. Represent the Blood Center in all dealings, i.e. meetings, contracts, negotiations, etc.,
with all other offices, agencies and instrumentalities of the government and with all
persons and other entities, domestic or foreign;

e. Appoint, remove, suspend or discipline all other officers and employees of the Blood
Center, the authority of which is not vested with the Board; and

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f To exercise such other powers and perform such other duties provided in the by-laws

and as vested to him by the Board.

Sec. 9. Program for Indigents. - The Blood Center shall adopt and enforce a
program for indigents needing blood or blood products, as well as to indigent patients with
blood diseases, in accordance with the implementing guidelines on classification of patients
and on Availment of the Medical Social Services in Government Hospitals, The Department
of Health shall ensure that this program for indigents is effectively implemented.

Sec. 10. Income Retention. — The Blood Center is hereby authorized to retain and
utilize the income derived from its operation for the continuous improvement of its services
and facilities, subject to auditing rules and regulations. No amount from such income,
however, shall be used to augment the salaries and other compensation of the Blood Center
personnel beyond the amounts determined by the Governance Commission for Government-
3), as provided for in RA 10149.

Owned and Controlled Corporations (Gt

Sec. 11. Exemption from Taxes. ~ The Blood Center shall be exempted from the
payment of taxes on all contribution thereto and all accruals on its income and investment
earnings.

Any donation, contribution, bequest, subsidy or financial aid which may be made to it
shall constitute allowable deduction from the income of the donor for income tax purposes
and shall be exempt from donor's tax subject to such conditions as provided in the National
Internal Revenue Code.

The Blood Center shall be exempt from all other taxes, whether direct or indirect, on

its income, properties and operations.

Sec. 12. Supervision. — The Blood Center shall be under the direct supervision of the
Department of Health for purposes of policy direction and control. It shall submit an annual
report to the Department of Health, pursuant to the pertinent provisions of RA 10149.

Sec. 13. Assistance from Other Government Offices. — The Blood Center 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 its purposes and objectives.


Sec. 14. Appropriations. ~ The amount of Eight Hundred Fifty Million Pesos (Php
850,000,000.00) is hereby appropriated for the initial operation and maintenance of the Blood
Center. Thereafter, such sum as may be necessary for the continued operation of the Blood
Center shall be included in the annual General Appropriations Act.

Sec. 15. Implementing Rules and Regulations. — The Department of Health shall
issue the necessary Rules and Regulations to implement the provisions of this Act within

sixty (60) days from its effectivity

See. 16. Separability Clause. -If any part of or provision of this Act shall be held
unconstitutional or invalid, other provisions which are not affected thereby shall continue to
be in full force and effect.

Sec. 17. Repealing Clause. — All laws, issuances or parts thereof inconsistent with

this Act are hereby repealed or modified accordingly.

Sec. 18. Effectivity. — This Act shall take effect fifteen (15) days after its publication

in the Official Gazette or in any newspaper of general circulation.

Approved,