THIRTEENTH CONGRESS OF THE REPUBLIC ) 
"21 Jt'st 30 
:I 0 
OF THE PHILIPPINES 
1
'
 
FIRST REGULAR SESSION 
) 
SENATE OF THE 
Senate No. 
EXPLANATORY NOTE 
The Philippines continues to be plagued by a high prevalence of infectious 
diseases. Compounding this problem is the alarming increase in the incidence of 
degenerative and lifestyle diseases like hypertension, cancer, accidents, and 
diabetes. As a result, funds for health care are more often spent in treating the 
sick than in keeping the population healthy. 
Preventing these diseases therefore must be a priority of government. And 
to better assist government in this effort, people must be empowered and 
enabled to take action to improve their health. 
* 
This is the concept of health promotion. It aims to promote health and well 
being among individuals, communities and populations, enabling them to 
address the broad determinants of health in, order to reduce vulnerability and 
risks to ill health and disability throughout the life cycle, especially among the 
poor and marginalized groups. 
Towards this end, there is a need 
to create a central agency with 
adequate and sustainable financing, as well as some degree of financial 
independence, in order to fully undertake health promotion activities such as 
health education, social mobilization and advocacy. 
The bill therefore proposes the creation of a Health Promotion Institute to 
be funded from tobacco and alcohol taxes to ensure its sustainability and 
viability. The aim of such a strategy is two-fold - it secures funding for health 
promotion and at the same time counter the negative effects on health that have 
resulted from decades of cigarette and alcohol advertisements. This is not a new 
concept and has been tried and tested in Australia, Korea, Thailand and New 
Zealand. Countries such as Malaysia, Mongolia and China are also on the verge 
of enacting similar legislation. 


I believe it is time to put health in the hands of the people by helping them 
make informed choices and become masters of their own destinies. Through the 
Health Promotion Institute, our goal of making Filipinos manage their own health 
by 2010 will become a reality. It is for these reasons that 1 urge the speedy 
enactment of this measure. 
v- 
R, MD, M.P.H. 
J 


THIRTEENTH C0,NGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
1 
Senate No. 
Introduced by Senator Juan M. Flavier 
AN ACT E$TA$lISHING A NATIONAL HEALTH PROMOTION lNSTlTUTE TO 
SYSTEM, PROVIDING FOR A HEALTH PWQMOTION FUND AND FOR 
OTHER PURPOSES 
HEALTH PROMOTION IN THE PHILIPPINE HEALTH CARE 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
PART I 
PreIirninary Provisions 
Section 1. 
Short TWe - This Act shall be known anb sited as the 
“Health Promotion Act of 2Q04”. 
Sec. 2. Declaration of Policy - It is hereby declared a policy of the 
State to protect and promote the right to health of the people and instill health 
consciousness among them. While every Filipino has an inherent right to health, 
this right has not been fully realized due ta various factors that affect how people 
take control of their health. Toward this end, the State shall endeavor to provide 
adequate health information and promotion that will help people improve their 
health. It shall also be declared the policy of the State to provide sustainable 
funding for health promotion activities by allocating a certain percentage of 
tobacco and alcohol revenues for such activities. 


Sec. 3. Purpose - It is the main thrust of this Act to: 
a.) Establish a Health Promotion Institute and provide adequate 
funding for its operations; 
b.) Establish a Health Promotion Fund to be sourced from tobacco and 
alcohol taxes; 
c.) Promote tobacco free sports, arts and cultural activities through 
sponsorship of such activities by the Institute, in consonance with 
the passage of RA 921 1 ; 
d.) Counter the ill effects of tobacco and alcohol advertisements by 
funding activities that will help reverse the negative effect of such 
advertisements. 
Sec. 4. 
Definition of Terms - As used in this Act: 
a. 
b. 
C. 
d. 
e. 
Health Promotion - means any act, which is aimed at the fostering 
of a person’s physical, mental and social conditions by means of 
supporting 
personal 
behaviours, 
social 
conditions 
and 
environments conducive to physical strength, a firm mental 
condition, a long life and a good quality of life; 
Tobacco Taxes - means taxes derived from the manufacture and 
sale of tobacco products; 
Alcohol Taxes - means taxes (“rived 
from the manufacture and 
sale of alcohol beverages and liquors; 
Institute - refers to the National Health Promotion Institute 
established under this act; 
Board - refers to the National Health Promotion Board which shall 
be the governing board of the Institute. 
PART II 
Establishment of the Health Promotion Institute of the Philippines 
Sec. 5. Creation of the National Health Promofion lnstitute - There is 
hereby established a body corporate to b3 known as the National Health 
Promotion Institute. The Institute shall have its principal place of business in 
Metro Manila and may establish branches and offices in such other places as 
may be deemed necessary for the performance of its mandate. It shall be 
organized within 180 days from the date of effectivity of this Act. 


Sec. 6. Corporafe Powers of fhe Healfh Promofions lnsfifute - the 
Institute shall have the following corporate powers: 
a) To adopt, alter, and use an official seal which all courts, judges and 
persons all shall be judicially noticed; 
b) To acquire, hold and lease or own, real and personal property and 
sell, encumber or otherwise dispose of the same; 
c) To enter into, make and execute contracts and agreements of any 
kind or nature: 
d) To sue and be sued; 
e) To adopt its bylaws and promulghte such rules and regulations as 
may be necessary or proper to implement this Act, and to amend or 
repeal the same from time to time; 
9 To receive and acquire from any person and/or government and 
private entities, whether foreign or domestic, grants, donations and 
contributions consisting of such properties, real or personal, including 
funds and valuable effects or things, as may be useful, necessary or 
proper to carry out its purposes and objectives and administer the 
same in accordance with the terms of such grants, donations and 
contributions, consistent with its purposes and objectives; and 
g) To perform any and all acts necessary or incidental to achieve the 
objectives and purposes of this Act. 
Sec. 7. Funcfions of fhe lnsfifute 
The Institute shall perform the 
following responsibilities - 
a. To promote health and prevent illness in the Philippines; 
b. To fund activities related to the promotion of good health, safety or 
the prevention of diseases and accidents; 
c. To increase awareness of programmes for promoting good health in 
the community through sporting and cultural activities; 
d. To encourage healthy lifestyles in the community and support 
activities involving participation in healthy pursuits; 
e. To fund research' and development activity in support of these 
objects; and 
f. To coordinate all health promotion activities in the Philippines 


Sec. 8. Establishment of fhe Health Promotion Board - The corporat 
powers of the Institute shall be exercised, and all its business, activities an 
properties shall be controlled by a Board of Trustees, hereinafter referred to a 
the Board. It shall be composed of the following: 
a) Secretary of Finance and the Secretary of Health as Cc 
chairpersons; 
b) Permanent Representatives of the following government offices: 
- 
Department of Educatior 1; 
- 
Commission on Higher Education; 
- 
- 
Public Information Agency; and 
- 
Philippine Sports Commission 
Department of Science and Technology; 
c) Representatives from the private sector to be appointed by th 
President upon the recommendation of the chairpersons such as 
- 
- 
- 
One (1) member from the academdresearch institution; 
One (I) 
representative from a health promotion NGO; 
One (I) member from a duly recognized national medi 
organ izat i o n ; 
three 
All private sector representatives shall have a non-renewable term ( 
rears. 
Sec. 9. Functions and Duties of the Board - The Health Promotio 
Board shall perform the following functions: 
a. To define and approve the programs, plans, policies, procedures an 
guidelines for the Institute in accordance with its purposes and objective5 
and to control the management, operation and administration of th 
Institute; 
b. To approve the Institute’s organizational structure, staffing patterr 
operating and capital expenditure, and financial budgets prepared i 
accordance with the corporate plan of the Institute; 
c. To approve salary ranges, benefits, privileges, bonuses and other term 
and conditions of service for all officers and employees of the Institute 
upon recommendation of the Director General; 
d. To appoint, transfer, promote, suspend, remove or otherwise disciplin 
any subordinate officer or employee of {he Institute, upon recommendatio 
of the Director General; 
! 


e. To create such committee or committees and appoint members thereof, 
as may be necessary or proper for the management of the Institute or for 
the attainment of its purposes and objectives; 
f. To determine the priorities of the Institute consistent with the framework of 
its purposes and objectives and in coordination with other government 
agencies; 
g. To exercise such other powers and functions and perform such other acts 
as may be necessary or proper for the attainment of the purposes and 
objectives of the Institute. 
Sec. I O .  Conflict of Merest - A member of the Board who is in any 
way, whether directly or indirectly interested in a contract or proposed contract 
with the Board must, as soon as practicable after the relevant facts have come to 
his or her knowledge, declare the fact and the nature and extent of the interest, in 
writing to the Chairman, before the meeting of the Board and inhibit himself 
during the deliberations when such matter is taken up. The decision taken on the 
matter shall be made public and the minutes of the meeting shall reflect the 
disclosure made and the inhibition of the member concerned. 
Sec. 1 I. 
Removal from Office- The following are grounds for removal of 
any member of the Board : 
a. 
b. 
C. 
d. 
The member suffers from physical or mental incapacity that 
renders him or her incapable of properly discharging the 
duties and responsibilities of membership in the Board and 
such incapacity has lasted for more than six (6) months; or 
The member has committed acts or operations that are 
shown prima facie to be fraudulent or illegal or manifestly 
opposed to the aims and interests of the Authority; 
The member no longer possesses the qualifications 
specified in Section 8 of this Act; or 
The member is subsequently disqualified under the 
provisions of existing laws. 
Sec. 12 . Remuneration and Allowances. -The members of the board of 
trustees shall serve without compensation anc! allowances for the entire duration 
of their terms. However, each member of the Board of Trustees shall be entitled 
to per diem for every board meeting actually attended. The Board of Trustees 
shall fix the amount of per diem its members may be entitled to. 
Sec. 13. Meetings - The Board shall hold meetings at least twice a month 
for the conduct of its business or as often as maybe necessary upon the call of 
three (3) of its members. Any regular meeting shall be called by the Chairperson 
or in his absence, by any of the representatives of the Government to the Board. 


The presence of a chairperson and three (3) members shall constitute a 
quorum. 
The Institute shall maintain and preserve a complete record of the 
proceedings/minutes of the Board which can be made available to the public 
when national interest so requires as may be determined by the Board. 
Sec. 14. Direcfor General and Ofher Officers - The Institute shall be 
headed by a Director General who shall be a citizen of the Philippines, of good 
moral character, of unquestionable integrity, with at least 5 years experience in 
undertaking or leading health promotions activities. 
The Director General shall be appointed by the Board from a list of at least 
three (3) nominees prepared by a Selection Committee created by the Board and 
chaired by any of its members. 
The Director General shall be appointed for a term of six (6) years, which 
must be covered by a Performance Contract between the Institute and the 
Director General. Said contract may be pre-terminated by the Board for failure or 
unsatisfactory performance of' his or her responsibilities. The Director General 
may also be removed from office due to serious misconduct, gross and habitual 
neglect of duties, fraud or willful breach of trust, commission of a crime or offense 
and other causes analogous to the foregoing, as provided under the 
Administrative Code of 1987, the Revised Penal Code and other special laws, 
rules and regulations. 
The Director General shall be assisted by such Deputy Director General(s) 
and program managers/coordinators as the Board may determine to carry out the 
purposes and objectives of this Act. 
Sec. 15. Powers,-Funcfions and Dufjes of fhe Direcfor General - The 
Director General shall have the following powers, functions and duties: 
a. To exercise overall supervision and direction over the implementation 
of all programs of the Institute, and to supervise and direct the 
management, operation and administration of the Institute; 
b. To execute contracts, including deeds that may incur obligations, 
acquire and dispose assets and deliver documents on behalf of the 
Institute, within the limits of authority delegated to him by the Board; 
c. To implement and enforce policies, decisions, orders, rules and 
regulations adopted by the Board; 
d. To submit to the Board an annual report of the Institute; 
e. To submit to the Board an annual budget and such supplemental 
budget as may be necessary for its consideration and approval; and 


f. To exercise such other powers and functions and perform such other 
duties as may be authorized or assigned by the Board. 
PART 111 
The Healfh Promotion Fund 
Sec. 16. Health Promotion Fund - To implement the provisions of this 
Act, there is hereby created a Health Promotion Fund, which shall be used 
exclusively for the operations, programs and projects of the Institute. As such, 
beginning fiscal year 2004 and every year thereafter, five (5) percent of the 
excise tax collections on alcohol and tobacco shall be allotted for the Fund. 
Sec. 17. Automatic Appropriation and Release of fhe fund- The 
amount referred to in the preceding section shall be appropriated in the annual 
General Appropriations Act and released automatically in favor of the Health 
Promotion Institute. 
Sec. 18. Audif - All funds under the management and control of the 
Institute shall be subjected to an internal and external audit to be done as 
1 follows: 
a. Infernal Audit - There shall be an internal audit with respect to the 
finance, accounting and procurement of the Institute, with a corresponding audit 
report for submission to the Board, at least once a year. 
For the purpose of the internal audit, there shall be an official of the 
Foundation acting as an internal auditor with direct accountability to the Board, in 
accordance with the regulations prescribed by the Board. 
The Institute shall prepare a financial statement, which must include at 
least a balance sheet and an operation account to be submitted to the auditor 
within one hundred and twenty days as from the end of each accounting year. 
I 
b. External Audit - -At 
an interval of every year, the Commission on 
Audit or an outsider appointed by the Board with the approval of the Commission 
on Audit shall be the auditor and appraise the dispositions of money and property 
of the Institute. In this instance, opinions shall be analytically presented as to the 
extent to which such dispositions have corresponded to the objectives, 
proceeded in an economical fashion and met the targets. An audit report shall 
subsequently be prepared and submitted to the Board. 
For these purposes, the auditor shall have the power to inspect all account 
books of the Institute, interview and query the Director General, internal auditor, 
I 


officials and employees of the Institute and instruct such persons to furnish any 
additional account books, documents, and evidence of the Institute as is 
necessary. 
Sec. 19. Annual Report- The Board shall submit to the Office of the 
President, the President of Senate and Secretary General of House of 
Representatives, within the first quarter of every year, an annual report which 
shall include, but is not limited to, reports on the operations and condition of the 
Authority and the implementation of this Act. 
I 
PART 111 
Transitory and Miscellaneous Provisions 
Sec. 20. 
Transfer of Functions and Powers - Upon the 
establishment of the Institute, the functions, personnel and assets of 
the 
National Center for Health Promotion (NCHP) of the Department of Health shall 
be transferred to the Institute without need of conveyance, transfer or 
1 assignment. 
For the year during which this Act was approved, the unexpended portion 
of the budget of the office merged shall be utilized for establishing the Institute 
and initiating its operations, including the formulation of rules and regulations 
I necessary for the implementation of this Act. 
Incumbent officials and employees of tpe affected office shall continue to 
exercise their respective functions, duties and responsibilities with the 
corresponding benefits and privileges. To the extent possible and in accordance 
with existing laws, all employees of the affected offices shall be absorbed by the 
Institute. 
Sec. 21. 
lmplementing Rules and Regulations - The Board shall 
promulgate the IRR for this Act within ninety (90) days from its constitution. 
Failure to promulgate the IRR shall not affect the implementation of the self- 
executory provisions of this Act. 
Sec. 22. Separability Clause- If any provision or section of this Act is 
held invalid, the other provisions and sections not affected thereby shall remain 
in full force and effect. 


Sec. 23. Repealing Clause- All laws, executive orders, administrative 
rules and regulations or parts thereof which ?re inconsistent with the provisions 
of this Act are hereby amended, modified, or repealed accordingly. 
Sec. 24. 
Effecfivify Clause- This Act shall take effect fifteen (15) 
days following its publication in the Official Gazette or in two (2) newspapers of 
general circulation. 
Approved.