FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
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Senate Bill No. 2029 
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Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORY NOTE 
The State recognizes health as a basic human right. Article 11, Section 15 of the 
1987 Constitution provides that: 
The State shall protect and promote the right to health of the 
people and instill health consciousness among them. 
Although this right is guaranteed by the 1987 Constitution, access to health care 
system in the Philippines especially by the poor is still hampered by financial, physical, 
social and cultural barriers. 
To help achieve the country's vision of universal primary health care services, it is 
not enough to be contented with the present capacity of the country's health care system. 
It is important to build the country's capability for research and development because 
these can fuel the necessary iunovation that will lead to a responsive and efficient health 
care system. 
To achieve this, the country must provide for a favorable research environment 
wherein government agencies, non-government organizations, public and private 
hospitals, academic institutions and private agencies can optimize their research 
activities. However, a closer scrutiny at the present system would reveal that current 
researche$ are uncoordinated, fragmented and duplicated which precludes the optimal use 
of time, effort and resources. 
, The proposed Philippine National Health Research System bill will address these 
current problems by institutionalizing the Philippine National Health Research System 
(PNHRS) and create the Philippine National Health Research Fund (PNHRF). 
PNHRS if recognized and institutionalized by statutory mandate shall serve the 
fo llowing functions: 
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Produce new knowledge through research; 
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Develop a national and global network of researchers, research organizations, 
and other members ofthe health search community; 
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Secure sustainable financing for health research and development; 
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Build capacities for health research and development activities and encourage 
individuals to pursue research as a career; 
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Inculcate internationally and culturally accepted' ethical standards and 
principles especially in researches involving human'subjects and participants; 
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Deepen the involvement of stakeholders; 
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Ensure public access to the information and other outputs generated by the 
health research systems; and 
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Encourage the utilization of research results in the form of products, 
technologies, programs and services. 
Our country's ability to ensure optimum health for every Filipino hinges on the 
degree of priority we grant to health research and development (R & D) activities. This 
bill, therefore, seeks to oblige a number of government institutions to allocate a particular 
portion of their gross annual revenue or charge additional fees for health research and 
development activities. 
Approval ofthis bill is earnestly sought. 
E~i.~RA 
Senator 
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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
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SENATE 
Senate Bill No. 20 2 9 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT 
INSTITUTIONALIZING THE PHILIPPINE NATIONAL HEALTH RESEARCH 
SYSTEM, ESTABLISHING THE PHILIPPINE NATIONAL HEALTH 
RESEARCH FUND PROVIDING FOR ITS ADMINISTRATION AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
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SECTION I. Short Title. This Act shall be Imown as the "Philippine National Health 
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Research System Act of 2010. " 
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SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to: 
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(A) protect and promote the right of health to the people and instill health 
, consciousness among them: and 
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(B) improve the quality of life of every Filipino through health research and 
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development initiatives. 
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SECTION 3. Definition of Terms. For purposes of this Act, the term: 
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(A) "Health" is defined as a state of optimal physical, mental and social well-
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being and ability to function at the individual level. 
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(B) "Research and development (R & D) for health" - generation oflmowledge to 
identify and deal with health problems, health system and policies as well as 
those that impact on health. 
(C) "Philippine National Health Research System (PNHRS)" is a framework 
anchored on the principles of Essential National Health Research on 
inclusiveness, participation, quality, equity, efficiency and effectiveness, 
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which connect to, and converge with, the wider health, economic, political, 
educational and science and technology (S & T) systems of the country. 
(D) "National Unified Health Research Agenda" contains the research priorities 
determined by the country's stakeholders which serve the health needs of the 
population especially the marginalized, disadvantaged and those with special 
'needs. This agenda is a platform to advocate for local, national, and 
international support. 
(E) "Core agencies" refer to the main national health and health related agencies 
namely: the Department of Health (DOH), the Department of Science and 
Technology-Philippine Council for Health Research and Development 
(DOST-PCHRD), University of the Philippines Manila - National Institutes 
of Health ((UPM-NIH), and the Commission on Higher Education (CHED). 
(F) "Philippine National Health Research Fund (PNHRF)" refers to a special 
fund which by legislative action, segregates specified revenues for health 
research purposes. 
(0) "Health research stakeholders" include the national and the local private and 
public health agencies, policy makers, the academe, medical societies, 
people's organizations, and others which may have the roles of health 
researchers, program administrators and beneficiaries. 
(H) "Management of Fund" - involves the generation, allocation and utilization, 
of the PNHRF, including government and non-government sources, and both 
domestic and international sources. 
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Article 2 
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The Philippine National Health Research System 
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SECTION 4. Creation of the Philippine National Health Research System. The 
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Philippine National Health Research System (PNHRS) is hereby constituted to improve 
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the health status, productivity, and the quality of life of Filipinos by: 
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(1) Ensuring that health research is linked to the health system needs; 
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(2) Ensuring that investments in health research yield the most benefit; 
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(3) Promoting good governance in research towards high performing and ethical 
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health research organizations; 
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(4) Engaging in national and international partnerships and networks for health 
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research development. 
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SECTION 5. Composition of the PNHRS. The PNHRS shall be composed of the 
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Governing Council (GC), Steering Committee, the Technical Working Committees 
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(TWC), the Secretariat, and the whole health research community. The interrelationships 
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among these various components shall be described in the IRR of this Act. 
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SECTION 6. Creation of the PNHRS Governing Council. The PNHRS GC, whose 
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functions are enumerated in Section 7 shall be composed ofthe following: 
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(1) The Secretary of the Department of Science and Technology (DOST) 
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(2) The Secretary of the Department of Health (DOH) or his/her designated 
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permanent representative; 
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(3) The Chair of the Commission on Higher Education (CHED); 
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(4) The Chancellor of the University of the Philippines Manila (UPM); 
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(5) The National Nutrition Council Director; 
(6) The PCHRD Director; 
(7) President of the Philippine Health Insurance Corporation (PHIC); 
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(8) The Director General of the National Economic Development Agency 
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(NEDA) 
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(9) The Professionals Regulation Commission (PRC) Chairperson 
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(10) 
Representative from the Philippine health industry; 
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(11) 
Representative from a non-government organization (NGO); 
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Representative from Academe; 
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(13) 
Representative from League of Governors; and 
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(14) 
Representative from the Regional Health Research System. 
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Representatives 1-9 shall serve as Ex-Officio Members while those mentioned in 
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numbers 10 to 14 shall be nominated by the core agencies, and appointed by the President 
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of the Philippines for a term of three (3) years; provided however, that for those first 
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appointed representatives from Philippine health industry, NGO network and academe 
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shall serve for three (3) years and those first appointed representatives from the League of 
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Governors and the Regional Health Research Development Committees shall serve for 
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two (2) years. The qualifications of the representatives mentioned in subparagraphs 10-14 
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shall be provided for in the Implementing Rules and Regulations ofthis Act. 
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Majority of the members ofthe GC shall constitute a quorum in all meetings. 
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SECTION 7. Functions of the PNHRS Governing Council. The PNHRS GC shall: 
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(1) set policies and directions for the PNHRS; 
(2) periodically review and approve the long-term plans and programs of the 
PNHRS; 
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(3) evaluate and approve the National Unified Health Research Agenda 
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,developed and integrated by the Core Agencies, and identify areas that will 
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serve as the foci of the National Health Research Agenda; 
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(4) establish the criteria for stakeholders that can apply for grants for the approval 
ofprojects and programs; 
(5) approve investments of the PNHRF created under Section 11 of this Act; 
(6) review, grants and/or donations to any government agency relative to health 
research from domestic and international funding agencies; 
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(7) review and approve research projects and programs; 
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(8) create committees as the need atises. 
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SECTION 8. Creation/Functions of the Steering Committee. The GC shall create the 
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Steering Committee composed of the six (6) PNHRS Technical Working Committee 
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Chairs. The functions of the Steering Committee are: 
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(1) recommend policies to the Governing Council: 
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(2) perform oversight function on the implementation ofPNHRS activities; 
(3) coordinate activities of the six (6) PNHRS committees, and 
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(4) monitor and report the progress ofthe committees' programs to the Governing 
Council. 
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Section 9. Creation PNHRS Committees. The GC shall create the following Committees 
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composed of representatives from the Core Agencies and various stakeholders: 
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(1) Research Management - provide technical and policy advice in setting health 
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research agenda, formulating policies and addressing matters related to 
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priority setting, proposal review and funding/fund management, and project 
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monitoring and evaluation; 
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(2) Ethics - ensure adherence to universal ethical principles and values on the 
dignity of health research participants; 
(3) Capacity Building - provide technical and policy advice in the development 
and continuous supply of quality human and institutional resources for health 
research: 
(4) Structure, Organization, Monitoring and Evaluation - provide technical and 
policy advice to ensure the stewardship and leadership of the PNHRS 
espoused health research that connects to health needs and outcomes, policy 
and action; 
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(5) Research Utilization - provide technical and policy advice to develop and 
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sustain knowledge management systems, communication and advocacy 
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strategies to connect research to health needs and outcomes, policy and action; 
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(6) Resource Mobilization - provide technical and policy advice/support to secure 
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sustainable financing, and ensure equity, effective and efficient use of 
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resources for health research and development. 
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The Committees shall develop, implement, and monitor their respective strategic plans. 
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Section 10. The Executive Director and Secretariat. The PCHRD Executive Director 
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shall be the PNHRS Executive Director, responsible for, among others, the coordination 
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and oversight functions of the System assisted by the PCHRD secretariat. 
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Article 3 
The Philippine National Health Research Fund 
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SECTION II. Creation and Nature of the Philippine National Health Research Fund. A 
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Special Research Fund hereinafter called the Philippine National Health Research Fund 
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(PNHRF) is hereby created under the management of the GC through the Secretariat. 
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The PNHRF shall not be used for purposes other than those provided in Section 12 of this 
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Act. Moreover, no portion of the funds of the PNHRS or income thereof shall accme to 
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Gene~al Fund of the national government and its political subdivisions, 
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instrumentalities and other agencies including government-owned and controlled 
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corporations except as may be allowed under this Act. 
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SECTION 12. Uses of the PNHRF. The main objective of this fund is to provide 
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sustained financial support for lmowledge management and its translation into efficient 
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and effective health- policies and service delivery; a strengthened health care system; and 
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improved health for all Filipinos. It shall ensure that the Government invests in health 
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research as part of its commitment to secure the well-being of its citizens. Specifically, it 
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shall be utilized for any or all of, but not limited to, the following: 
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(l) support quality ethical research and the application of ethical principles to 
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health research and development activities; 
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(2) create a robust health research environment in the Philippines that will attract, 
develop and keep excellent researchers and provide them with the opportunity 
to contribute to the improvement of people's health in the country and the 
world; 
(3) fulfill an integrated health research agenda across disciplines, sectors and 
regions that reflect the emerging health needs of Filipinos and the evolution of 
the health system, and support's health policy decision-making; 
(4) ensure the promotion research undertakings that meet the highest international 
~cientific standards of excellence and ethics and that pertain to all aspects of 
health, including bio-medical research, clinical research and research on 
health systems, health services, the health of populations, societal and cultural 
dimensions of health and environmental influences on health; 
(5) address emerging health opportunities, threats and challenges (e.g. avian flu, 
SARS) and accelerate the discovery of cures and treatments and 
improvements to health care, prevention and wellness strategies; 
(6) promote the dissemination of research-based knowledge, technologies, and 
innovations and the application of health research to improve the health of 
Filipinos and, provide support for the participation of Filipino health scientists 
in international collaboration and partnerships in health research. 
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SECTION 13. Sources of PNHRF and Method of Collection. 
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(1) The PNHRF shall be sourced out from the following agencies, but not limited 
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to: 
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a. One percent (1 %) of the gross annual revenue collected by the PHIC 
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from premium payments until the PNHRF reaches the sum of 10 
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Bilion pesos; 
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b. Five percent (5%) of the annual revenue collected by the National 
Statistics Office (NSO) from birth certificate issuances; 
c. Fifteen percent (15%) of the total fees collected by the Professional 
Regulation Commission (PRC) from the issuance and renewal of 
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licenses of health professionals such as but not limited to physicians, 
nurses, dentists, pharmacists, medical technologists, midwives, 
dieticians, and veterinarians; 
d. Any other appropriations from the General Appropriations Act; and 
e. Donations and grants from domestic and international sources duly 
accepted/approved by the GC which do not constitute a breach of the 
Philippine laws and recognized international treaties. 
(2) All agencies mentioned in the preceding paragraph are hereby directed to 
automatically remit semi -annually the amonnt prescribed by this Act to the 
specified account established by the GC on or before the 31st day of January 
and July of each year. This does not preclude the agencies from making 
advance contributions provided they fall within the specifications of this act. 
(3) The rates indicated in Paragraph 1 hereof shall be reviewed and updated every 
five (5) years. 
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SECTION 14. Management and Allocation of Fund 
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(1) The GC through the secretariat shall manage the funds in accordance with 
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generally accepted aUditing standards; 
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(2) The GC shall allocate two percent (2%) from the fund for research operational 
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expenses. 
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(3) The GC is authorized to invest the PNHRF that was not allocated/obligated 
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during the current year in any ofthe following: 
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a. Interest-bearing bonds, securities, and other evidence of indebtedness 
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of the Republic of the Philippines and other evidences to which fhll 
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faith and credit and unconditional guarantee of the RepUblic of the 
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Philippines are pledged. 
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b. In interest-bearing deposits and loans to or securities in any domestic 
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bank doing business in the Philippines: Provided, that in the case of 
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such deposits, this shall not exceed at any time the unimpaired capital 
and surplus or total private deposits of the depository bank, whichever 
is smaller. Provided, further, that said bank shall first have been 
designated as depository for this purpose by the Monetary Board of the 
Bangko Sentra1 ng Pilipinas (BSP); and 
c. In preferred stocks of any solvent corporation or institution created or 
existing under the laws of the Philippines: Provided, that the issuing, 
assuming, or guaranteeing entity or its predecessor has paid regular 
dividends upon its preferred or guaranteed stocks for a period of at 
least three (3) years immediately preceding the date of investment in 
such preferred or guaranteed stocks. Provided further, that if the stocks 
are guaranteed the amount of stocks so guaranteed is not the excess of 
fifty percent (50%) of the amount of the preferred common stocks as 
the case may be of the issuing corporation. Provided furthermore, that 
if the corporation or institution has not paid dividends upon its 
preferred stocks, the corporation or institution has sufficient retained 
earnings to declare dividends for at least two years on such preferred 
stocks and in common stocks options. 
The Board can also invest in common stocks of any solvent 
corporation or institution created or existing, under Philippine laws, in 
the stock exchange with proven track record of profitability and 
payment of dividends over the last three (3) years or in the common 
stocks of a newly organized corporation about to be listed in the 
Philippine stock exchange. Provided, finally, that such duly organized 
corporation shall have been rated "A, double "A's" or triple "A's" by 
authorized accredited domestic rating agencies or in mutual funds 
including allied investments. 
(4) The GC shall allocate not less than sixty percent (60%) but not more than 
seventy five percent (75%) to priority research programs and agenda as 
'defined by the National Unified Health Research Agenda and to UPM-NIH, as 
lead implementing agency for health research, not less than twenty five 
percent (25%) but not more than forty percent (40%) of the funds. 
(5) The GC, through the Secretariat shall submit periodic reports to agencies 
mentioned in Section 6 on the use of the PNHRF. 
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SECTION 15. Creation of the Investment Advisory Group. 
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(1) 
An Investment 
Advisory 
Group 
IS 
hereby 
established 
to 
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recommendations to the GC on matters of investments from the PNHRF. 
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The group shall recommend the method of investment that will yield the 
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highest return for the PNHRF. 
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IS 
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(2) 
The advisory group shall be composed of the Representatives of the Core 
Agencies to be appointed by their respective heads and any three of the 
following, for a term of three (3) years: 
a. An economist or market analyst with extensive knowledge of the 
financial and stock markets; 
b. A representative from the Bangko Sentral ng Pilipinas (BSP); 
c. A member from the Philippine Bar; 
d. A representative from the research commnnity. 
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Provided that the representative from the BSP shall always be a member of the Advisory 
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Group. 
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Article 4 
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Final Provisions 
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SECTION 16. Monitoring, Evaluation, Accountabilities, and Annual Report. Regular 
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monitoring and evaluation mechanism shall be done by the GC through the secretariat to 
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detennine the accountabilities of the System to the Contributing Agencies. The 
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specifics/details of monitoring, evaluation, accountabilities and annual reporting shall be 
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provided for in the Implementing Rules and Regulations of this Act. 
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SECTION 17. Implementing Rules and Regulation. The Core Agencies shall promulgate 
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the implementing rules and regulations of this Act within a year after the effectivity 
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hereof. 
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SECTION 18. Separability Clause. If any provision or part hereof, is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall 
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remain valid and sUbsisting. 
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SECTION 19. Repealing Clause. Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regnlation contrary to or 
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inconsistent with, the provisions of this Act is hereby repealed, modified or amended 
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accordingly. 
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SECTION 20. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved, 
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