Republic of the Philippines
HOUSE OF REPRESENTA‘
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILLNOo.__ 602

Introduced by HON. EDGAR M. CHATTO
First District, Bohol

EXPLANATORY NOTE

The coronavirus or Covid 19 pandemic is not the first, nor will be the last, global
health emergency.

It was recently estimated that there are 320,000 mammalian viruses, many of which
may have the potential for human transmission. Even if only a small fraction of these
viruses can jump into humans and cause disease, humanity is living under a tremendous
threat from viral zoonoses.' New pathogens continue to emerge, and existing nonviral
pathogens become resistant to common antibiotics. Hence, we are living at a time of great
need for the digeptine of virology.

Virology is the scientific study of viruses. It focuses on their detection, structure,
classification and evolution, their methods of infection and exploitation of host cells for
reproduction, their interaction with host organism physiology and immunity, the diseases
they cause, the|techniques to isolate and culture them, and their use in research and therapy.

There can be no argument that humankind's best hope of preventing and treating
these diseases comes from a vigorous research enterprise. Vannevar Bush recognized this
after World War II in the landmark report “Science, the Endless Frontier,” in which he
convinced the U.S. government that investment in basic research at universities would yield

Indeed, we have now almost eliminated polio due to the development of vaccines and
have converted HIV infection from a certain death sentence to a largely manageable state,
and, as mentioned above, we have our first anticancer vaccines by preventing some viral
infections. The tremendous reduction in mortality from such diseases as variola, measles,
and rubella came about only because the causative viruses were identified, cultivated,
attenuated, and made into effective vaccines by biomedical research. In addition to having
applied these practical findings, we have gained important fundamental insights into the
biology not only of viruses but also of the cells that they infect, and that information is being
applied to find! cures against other diseases, such as cancer. All these advances, and more,
have come about because of public trust in science and investment in scientific research.4

The proposed Virology Science and Technology Institute of the Philippines will be an
attached agency under the Department of Science and Technology (DOST) for purposes of
policy and program coordination to ensure alignment in national policies and priorities.

The Institute shall serve as the premier research and development institute in the
field of virology, encompassing all kinds of viruses and viral diseases in plants, animals and

‘The Importance of Virology at a Time of Great Need and Great Jeopardy https: //journals.asm.org/doi/10.1128/mBio.00236-15
2 The Importance of Virology ata Time of Great Need and Great Jeopardy htps://journals.asm.org/doi/10.1128/mBio.00236-15,
‘ https://wwew.nstgovjod/pa/nsfS0/vbushig4s. him

4 The Importance of Virology at a Time of Great Need and Great Jeopardy https: //journals.asm.org/doi/10.1128/mBi0.00236-15,


humans. It shall be a venue for scientists, research institutes and other organizations in the
Philippines and abroad, to work collaboratively to study viruses of agricultural, industrial,
clinical, and environmental importance.

The creation of a virology institute in the country is now a necessity.

For the foregoing reasons, the passage of this proposed legislative measure is

earnestly sought.
oth CHATTO



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILLNo._ 802

ee

Introduced by HON. EDGAR M. CHATTO
First District, Bohol

AN ACT
ESTABLISHING THE PHILIPPINE VIROLOGY SCIENCE AND TECHNOLOGY
STITUTE AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “Virology Institute of the
Philippines (VIP) Act.”

SEC. 2, Declaration of Policy. — It is the policy of the State to protect and
promote the right to health of the people and instill health consciousness among them. The
State recognizes that science and technology is essential for national development and

progress.

To this end, the State shall formulate and implement policies that shall address
current health issues, such as the quality and adequacy of health and medical human
resources, health institutions, and delivery of health services, and shall give priority to
research, the development and promotion of innovations in both technology and services,
the use of safe and indigenous health-promoting practices, and their appropriate utilization
by the health sector.

In this regard, the State shall prioritize the establishment of an institute that will
conduct in-depth studies on viruses and their potential disease-causing agents that affect
people, plants, and animals, in order to provide the scientific bases for the treatment of viral

is , and for the formulation of policies that shall prevent the transmission of these
diseases within the community and national context.

SEC. 3. Objectives. - This Act seeks to establish a virology institute that shall focus
on the following key development areas for virology science and technology applications in
plants, animals, and humans:

a) Research on viruses using a modern approach such as molecular biology and its
application or biotechnology;

b) Development of diagnostics, vaccines, and therapeutics;
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°) International cooperation and network of databases of virus infections;
d) Operation of a virus gene bank, virus genome laboratory, and virus reference
laboratory to focus on viruses circulating in the Philippines for disease
Prevention and epidemiological studies; and,


e) Operation of a virus high containment laboratory dedicated to the study of
highly infectious and highly pathogenic virus.

SEC. 4. Definition of Terms. - As used in this Act:

a) Bacteriophage refers to any group of viruses that infect specific bacteria, usually
causing their disintegration or dissolution;

b) Biosafety refers to a condition in which the probability of harm, injury, and
e resulting from the intentional and unintentional introduction or use of a
ited article is within acceptable and manageable levels;

c) Biosecurity refers to the strategic and integrated approach to analyzing and
managing relevant risks to plant, animal and human life, and health and
associated risks for the environment. It is based on recognition of the critical
linkages between sectors and the potential for hazards to move within and
between sectors, with system-wide consequences;

4) Diagnostics refer to methods, tests, techniques, and tools in viral diagnosis for
plants, animals and humans;

e) Therapeutics refer to anti-viral, bacteriophages, nanotechnology treatment
approach, nucleic acid-based treatment, remedial agents, drugs for the
treatment of viral diseases and infections of plants, animals and humans;

f) Vaceine refers to a product that induces or stimulates active acquired immunity
by producing antibodies to a specific infectious agent. It helps the body's
immune system to recognize and fight pathogens like viruses or bacteria; and

8) Virology refers to the scientific discipline concerned with the study of the
biology of viruses and viral diseases of plant, animal, and human medical
importance and pandemic potential, including the distribution, pathogenicity,
viral cytopathicity, biochemistry, physiology, molecular biology, biotechnology,
ecology, tropism, spillover or interspecies transmission, evolution, and clinical
aspects of viruses.

SEC. 5, Creation of the Virology Science and Technology Institute of the
Philippines. - The Virology Science and Technology Institute of the Philippines (VIP) is
hereby created and shall be an attached agency under the Department of Science and
Technology (DOST) for purposes of policy and program coordination to ensure alignment in
national policies and priorities.

The VIP shall serve as the premier research and development institute in the field of
virology, encompassing all kinds of viruses and viral diseases in plants, animals and
humans. It shall be a venue for scientists, research institutes and other organizations in the
Philippines and abroad, to work collaboratively to study viruses of agricultural, industrial,
clinical, and environmental importance.

SEC. 6, Mandate. - The VIP shall implement policies, plans, programs, and
projects for the development of virology science and technology in the country and the
promotion of sc and technological activities for both the public and private sectors. It
shall ensure that the results of these activities are properly applied towards self-reliance and
utilized to accelerate economic and social development towards the protection of the
citizens and resources.

SEC. 7.. Powers, Functions, and Duties. - To accomplish its mandate, the VIP
shall have the following powers, functions, and duties:


a)

b)

°

d)

e)

h)

i)
Dd

kK)

Serve as the lead convener for the formulation of the National Virology Research
Agenda, in consultation with all concerned stakeholders, that will encompass
researches involving viruses of plant, animal and humans;

Undertake scientific and technological research and development in the field of

“ logy;
Conduct product research and development in the areas of diagnostics,
therapeutics, and vaccines in cooperation with the private sector and concerned
government agencies;

Peat and undertake the transfer of the results of scientific research and
development in collaboration with government agencies, industry, and the
academe;

Promote, advocate and oversee virology research ethics, biosafety, and
Die ity;

Develop and maintain an information system on virology science and technology
for use by both the public and private sectors;

ede and implement, together with other entities concerned, programs for
ingthening scientific and technological capabilities in virology and relevant
disciplines through human resource development, infrastructure, and institution
building;

Undertake policy research, technology assessment, and other related studies on
virology;

Provide laboratory and technical services on virology;

Promote and advocate the national programs on virology science and technology;
ant

Establish linkages with local and international partners.

SEC. 8, Organizational Structure. - The VIP shall be headed by a Director and
two (2) Deputy Directors for Research and Development, and Support, Policy, and Linkages.

The VIP shall be composed of the following divisions:

1. Virus Research

2. Diagnostics and Therapeutics Research

3: Vaccines Research

4. Technical Services and Training
5. Policy, Planning, and Linkages
6. Finance and Administration.

The Deputy Director for Research and Development shall oversee the operations of

the Virus

Divisions.

ch, Diagnostics and Therapeutics Research, and Vaccines Research
The Deputy Director for Support, Policy, and Linkages shall oversee the

operations of the Technical Services and Training, Policy, Planning, and Linkages, and
Finance and inistration Divisions.


The a shall have technical and administrative support staff and consultants. The
consultants may come from the public and private sectors on a consultancy or contractual
basis, and shall be granted honoraria or allowances in accordance with existing rules and
regulations.

Subject to the approval of the Department of Budget and Management (DBM), the
VIP shall determine its organizational structure, create new divisions or units as it may
deem necessary, and appoint its officers and employees.

For this purpose, the VIP shall, in consultation with the DBM, determine the
necessary position qualifications and standards for its personnel following civil service laws,
Tules, and regulations.

SEC. 9, Qualifications of the VIP Director and Deputy Directors. — Upon
the recommendation of the Governing Board, the President of the Philippines shall appoint
the Director of the VIP who must possess a bachelor’s degree in the field of microbiology
and a postgraduate degree in virology, and should have at least three (3) years experience in
the field of diagnostic virology. The Director of the VIP shall have the rank of Director IV,
Salary Grade ($G)-28, and shall exercise overall responsibility over the activities of the VIP,
including the |supervision over VIP staff. The Director of the VIP shall report to the
President of the Republic of the Philippines and the Secretary of the Department of Science
and Technology the results of the various diagnostic assays and research studies undertaken
by the VIP.

Each of the Deputy Directors of the VIP shall have a rank of Director III, SG-27. Each
must possess a Bachelor's Degree in Microbiology or in a similar field and at least a Master's
Degree in Virology.

SEC. 19. The Governing Board. ~ The Governing Board shall be the policy-
making body for the scientific and technological activities of the VIP, composed of the
following:

Chairperson:

a) Secretary of the DOST;

Co-Chairpersons:

b)Secretary of the Department of Health (DOH);

©) Secretary of the Department of Agriculture;

Members:

d) Undersecretary of the Department of Environment and Natural Resources;

e) Undersecretary for Technology for Research and Development of the DOST;

f) Undersecretary of the Department of Foreign Affairs (DFA) for International
Economic Relations;

|
g) Chairperson of the Commission on Higher Education (CHED);
h)Director of the Research Institute for Tropical Medical Medicine (RITM);

i) Director General of the Food and Drug Administration (FDA);



|
i) Director of VIP;

k)Executive Director of University of the Philippines-National Institute of Health;
) Rempeeiatire from the National Academy of Science and Technology;
m) Representative from the National Research Council of the Philippines; and

n)Three (3) representatives from the private sector appointed by the President of the
Philippines, as nominated by the Governing Board. These representatives shall
have distinguished themselves in the fields of medical virology, genomics, plant
viral , animal virology, epidemiology, genetic engineering and other related
lisciplines.

The VIP Secretariat shall serve as the Secretariat to the Governing Board.

SEC. 11. Transfer of Units, Offices and Functions. - All offices and units
under the DOST system which functions are related to virology shall be transferred to the
VIP.

All powers, functions, assets, capital, records, funds, receivables, equipment and
facilities of the DOST units or its division shall be transferred to the VIP. The DOST shall
conduct an audit and inventory of assets, liabilities and human resources of the transferred
offices and units under the DOST system to the VIP. All transferred and new employees
under the DOST System shall be subject to the qualification standards provided for in the
laws, rules ang regulations of the Civil Service Commission.

SEC. 12. Engagement of Balik Scientists and Foreign Experts. -The VIP
may engage the services of Balik Scientists and foreign experts who shall work together with
the local scientists and experts, following the terms of reference and compensation
structure in accordance with Republic Act No. 11035 or the “Balik Scientist Program Act”
and other existing laws.

SEC. 13. International Cooperation. - The VIP shall establish strategic
partnerships with the world’s leading scientists, virology centers and institutes, and conduct
innovative and pioneering researches that will advance the frontiers of virology in the
country. It may enter into a memorandum of agreement or understanding with
international partners, upon the approval of its Governing Board and in compliance with
existing laws, rules, regulations and issuances of the DFA. The DFA shall provide legal and
other forms of assistance to the VIP.

The Regional Office of the World Health Organization (WHO) in the Philippines
shall also be consulted upon approval of the Governing Board of the VIP.

SEC. 14. Interdepartmental Cooperation. - The VIP shall collaborate with the
DOH, Department of Finance, FDA, RITM and other relevant government agencies, in
accessing and mobilizing available information, reports, technical expertise, equipment,
materials and supplies as may be required to implement this Act.

i}

‘The scientific findings of the VIP shall be integrated in other plans relating to disease
control and ntion and in the plans of the Inter-Agency Task Force on Emerging
Infectious Diseases, as created by Executive Order No. 168 s. 2014, or its successor body, for
the management of public health emergencies relating to infectious diseases.

SEC. 15. Private-Public Partnerships (PPPs). - The Department of Trade and
Industry (DTD), the DOH, Public-Private Partnership Center and the DOST shall collaborate
in seeking Private-Public Partnerships (PPPs) for the development of new industries,
products and services where the VIP shall be the main research and development unit.


The DOST may also request the assistance of other national and local government
agencies in seeking PPPs where the VIP shall be the main research and development unit.

SEC. 16. Promotion of Virology Industry. - The DOST, in partnership with the
DTI and the DOH, shall jointly develop an industry roadmap for products and services that
can be created, improved, or optimized by research from the VIP. As far as practicable, the
industry roadmap shall include the use of local materials in the development of new
products. The industry developed or established resulting from the VIP researches shall be
included in the national government's priority industries for incentives.

SEC. 17. Promotion of Knowledge-transfer and Research in the Academe.
~ The VIP shall promote the creation of hubs and programs for virology research and
development in the academe, particularly in state universities and colleges (SUCs). Towards
this end, the VIP shall assist SUCs in the creation of virology courses and programs, open
internships and scholarships for qualified students of higher education institutions (HEIs),
and a with HEIs in the creation of virology research centers.

The CHED shall collaborate with the DOST in the promotion of HEI-VIP
partnerships.
SEC. 48. Protection of VIP-developed Intellectual Property. - The

Governing Board of the VIP shall ensure that all technologies developed exclusively by the
VIP with full funding from Filipino tax payers shall be protected by intellectual property
laws in accordance with Republic Act No. 10055 or the “Technology Transfer Act of 2009”
and other applicable laws. Any patent or property right award granted to the VIP shall be
held by and in|the name of the Philippine Government. In the case of partnerships, where
the VIP is a collaborating research partner, the Governing Board shall ensure that
technologies sp-developed by the VIP shall also be co-attributed to the Philippine
Government, with the corresponding intellectual protection.

SEC. 19. Procurement of Specialized Materials, Equipment and Services.
- The VIP shall undertake the procurement of specialized materials, equipment, and
services to be used by the VIP in its operation and administration, in the most expeditious
manner, and adopt the most suitable or appropriate method of procurement that it deems
fit based on its identified needs and requirements depending on the existing conditions and
requirements that justify the use of a particular alternative modality provided for by
Republic Act No. 9184 or the “Government Procurement Reform Act” and its 2016 Revised
IRR. |

SEC. 20. Official Site of VIP. - A lot with an area equivalent to at least five (5)
hectares under the administration of the Bases Conversion and Development Authority
(BCDA) within the New Clark Economic Zone in Tarlac Province shall be allocated
exclusively for the VIP, its research facilities, and laboratories. The biosafety infrastructure
shall be Vaigtel based on risk assessment standards and guidelines of the WHO for
handling specific pathogens and the establishment of virology laboratories in developing
countries.

SEC. 21. Entitlement to Magna Carta Benefits. - Qualified employees of the
VIP shall be covered by Republic Act No. 8439, otherwise known as “Magna Carta for
Scientists, Engineers, Researchers and Other Science and Technology Personnel in
Government”.

SEC. 22. Virology Research Fund. - All donations, contributions, grants,
bequests, or gifts, in cash or in-kind, received by the VIP from various sources shall be
placed into a fund, to be known as the Virology Research Fund and such donations shall be
exempt from donor's tax: Provided, That, acceptance of grants, bequests, contributions, and



donations from foreign governments shall be subject to the approval of the President of the
Philippines, upon the recommendation of the Secretary of DOST and the Secretary of DFA.

SEC. 23. Authority to Solicit, Negotiate, and Receive Donations, Grants,
Gifts, Legacies, Endowments, and Contributions. — The VIP may solicit, negotiate
with, and receive from any public or private domestic or foreign sources legacies, gifts,
donations, grants, endowments, contributions or other transfers of ownership and/or
Possession of real or personal properties of all kinds in favor and for the benefit of the VIP,
which shall all be part of the special account in the general fund.

SEC. 24. Tax Exemptions. - Donations, grants, gifts, endowments, legacies, and
contributions ised actually, directly and exclusively for the purpose of the VIP shall be
exempt from donor's tax and the same shall be considered as allowable deduction from
gross income for purposes of computing the taxable income of the donor, in accordance
with Sec. 34 (H)(2)(a) of the National Internal Revenue Code of 1997, as amended. Likewise,
such other transfers of ownership and/or possession of real or personal properties of all
kinds shall be exempt from all taxes.

SEC. 25. Annual Report. - The VIP shall submit its annual report to the President
and to the Committees on Science and Technology in both Houses of Congress, not later
than the goth of March of every year following the effectivity of this Act. The annual report
shall provide a/full and detailed account of the status of the implementation of this Act and
policy recommendations.

SEC. 26. Joint Congressional Oversight Committee. — There shall be a Joint
Congressional |Oversight Committee on the implementation of this Act, which shall be
jointly chaired) by the Chairpersons of the Committees on Science and Technology of the
Senate and House of Representatives. It shall be composed of the Chairpersons of the
Senate Committees on Health and Demography, and Agriculture, Food and Agrarian
Reform, the Chairpersons of the Committees on Health and Agriculture and Food of the
House of Representatives, and two (2) Members from each House representing the minority
who shall be | appointed by the Senate President and the Speaker of the House of
Representatives.

SEC. 27. Appropriations. - The initial amount for the implementation of this Act
shall be charged against the current year's appropriations of the DOST. Thereafter, the
funding of which shall be included in the annual General Appropriations Act.

SEC. 28. Transitory Provisions. -

a. The functions and assets of the DOST units enumerated herein shall be transferred
to the VIP within three (3) years without need of conveyance and transfer of
assignment.

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b. To the greatest extent possible and in accordance with existing laws, all employees
of the affected offices, agencies and units shall be absorbed by the VIP. Personnel
hired on a permanent basis and with appointments attested by the CSC who may
be affected by the transition of DOST units to VIP, or who will not be absorbed in
the new positions of the new staffing pattern of the different offices in the VIP,
shall Have the option to:

1. Be transferred to other units or offices within the DOST in accordance with civil
service law, rules and regulations; or

2. Avail of the applicable retirement benefits and separation incentives as
provided under R.A. No. 6656 and other relevant laws.


c. Incurt

bent DOST officials and employees may be considered to assume positions

in the VIP, subject to competency evaluation and CSC regulations.

d. Research grants acquired during the transition of DOST transferred units to VIP
shall be utilized solely for the grants’ intended purposes for each of the affected

units

r offices.

e. Existing contracts and agreements entered into by the affected offices with third

partic
SEC. 2
in consultatiot

prior to the enactment of this Act shall remain valid.

. Implementing Rules and Regulations. — The DOST Secretary shall,
with DBM, DOH, Civil Service Commission, and other relevant government

agencies, promulgate the necessary rules and regulations within one hundred twenty (120)
days from the éffectivity of this Act.

SEC. 3

. Separability Clause. - If any portion or provision of this Act is declared

invalid or unconstitutional, other provisions hereof shall remain in full force and effect.

SEC. 3)
other issuan
repealed or me

SEC. 3:
publication in

Approv

. Repealing Clause. - All laws, decrees, orders, rules, and regulations or
or parts thereof inconsistent with the provisions of this Act are hereby
ified accordingly.

. Effectivity. - This Act shall take effect fifteen (15) days after its
e Official Gazette or in a newspaper of general circulation.

d,