AN ACT PROVIDING FOR COVID-19 RESPONSE AND RECOVERY INTERVENTIONS AND PROVIDING MECHANISMS TO ACCELERATE THE RECOVERY AND BOLSTER THE RESILIENCY OF THE PHILIPPINE ECONOMY, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Eighteenth Congress
Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand twenty.

[ REPUBLIC ACT NO. 11494, September 11, 2020 ]

AN ACT PROVIDING FOR COVID-19 RESPONSE AND RECOVERY INTERVENTIONS AND PROVIDING MECHANISMS TO ACCELERATE THE RECOVERY AND BOLSTER THE RESILIENCY OF THE PHILIPPINE ECONOMY, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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 and cited as "Bayanihan to Recover As One Act".

Section 2. State of National Emergency. - Presidential Proclamation No. 922, s. 2020, was issued declaring a state of public health emergency throughout the Philippines due to the Coronavirus Disease 2019 (COVID-19). Thus, Republic Act No. 11469 or the "Bayanihan to Heal as One Act" was enacted declaring a state of national emergency over the entire country to control the spread of the disease. However, the rise of confirmed cases of COVID-19, and the serious threat to the health, safety, security, and lives of our countrymen persist. The severe disruption to livelihood and all other productive activity were reflected in the country's economic contraction during the first semester of 2020. In view of unabated spread of the COVID-19 virus and the ensuing economic disruption therefrom, the existence of a continuing national emergency is hereby affirmed in this Act.

Section 3. Declaration of Policy. - It is hereby declared the policy of the State to promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty, particularly in the aftermath of natural and man-made disasters, through policies that provide adequate social services, and promote full employment, a rising standard of living, and an improved quality of life for all. Towards this end, and in cognizance of the Adverse impact of the COVID-19 pandemic to the Philippine economy and society, the State shall likewise establish mechanisms to achieve the following objectives:

Section 4. COVID-19 Response and Recovery Interventions. - Pursuant to Article VI, Section 23(2) of the Constitution, the President is hereby authorized to exercise powers that are necessary and proper to undertake and implement the following COVID-19 response and recovery interventions:

Section 5. Exemption from Tax of Retirement Benefits;. — Retirement benefits received by officials and employees of private firms;' whether individual or corporate, from June 5, 2020 until December 31, 2020 shall be excluded from gross income and shall be exempt from taxation: Provided, That any re-employment of such official or employee in the same firm, within the succeeding twelve (12)-month period, shall be considered as proof of non-retirement and shall subject the benefits received to appropriate taxes. In addition to the payment of appropriate taxes, any person who willfully evades or defeats any imposable tax under this section shall be criminally liable and penalized under Section 255 of Republic Act No. 8424, as amended.

Section 6. Tax on Safe, Barter or Exchange of Shares of Stock Listed and Traded Through Initial Public Offering. - Section 127(B) of the National Internal Revenue Code of 1997, as amended, is hereby repealed.

Section 7. National Referral System. - There shall be established a COVID-19 National Referral System jointly developed by the DOH and the Philippine Red Cross to provide patients a fast and efficient way to locate and avail of the services of hospitals, clinics, isolation centers, other health facilities, blood banks, convalescent plasma facilities, and ambulance systems: Provided, That this section shall remain in effect even after the expiration of this Act.

Section 8. Non-Discrimination. - In addition to acts or emissions already penalized by existing laws, any person found to have committed any act or series of acts against a person declared confirmed, suspected, probable, exposed, or recovered of the COVID-19 virus, returning OFWs, health workers, frontliners, other service workers, or indigent which result in unjust distinction, exclusion, restriction, physical, psychological harm or suffering, intimidation, harassment, damage to property, public ridicule or humiliation, verbal abuse, arbitrary ejectment from dwelling, or unlawful deprivation of liberty,  shall be penalized with imprisonment of six (6) months and. a fine of One hundred thousand pesos (P100.000.00).

Section 9. Authority to Direct the Operation of Private Establishments During the Effectivity of this Act. — Consistent with. Article XII, Section 17 of the Constitution, when the public interest so requires, the President, during the effectivity of this Act, may direct the operation of any privately-owned hospitals and medical and health facilities including passenger vessels and other establishments, to house health workers, serve as quarantine areas, quarantine centers, medical relief and aid distribution locations, or other temporary medical facilities; and public transportation to ferry health, emergency, and frontline personnel and other persons: Provided, That the management and operation of the foregoing enterprises shall be retained by the owners of the enterprise, who shall render a full accounting to the President or his duly authorized representative of the-operations of the utility or business as basis for appropriate compensation: Provided, further, That reasonable compensation for any additional damage or costs incurred by the owner or the possessor of the subject property solely on account of complying with the directive shall be given to the person entitled to the possession of such private properties or businesses after the situation has stabilized or at the soonest time practicable: Provided, furthermore, That if the foregoing enterprises unjustifiably refuse or signify that they are no longer capable of operating their enterprises for the purpose stated herein, the President may take over their operations subject to the limits and safeguards enshrined in the Constitution.

Section 10. Appropriations and Standby Fund. - The amounts that will be raised under Section 4 paragraphs (pp), (qq), (rr), (ss), (sss) and (ttt) of this Act shall be used, for the response and recovery interventions for the COVID-19 pandemic authorized in this Act and the following:

Section 11. Sources of Funding. - The enumerated subsidy and stimulus measures, as well as all other measures to address the COVTD-19 pandemic shall be funded from the following:

The tax shall be computed on the peso equivalent of the foreign currency used, based on the prevailing official exchange rate at the time of payment, otherwise the same shall be considered as a fraudulent act constituting under declaration of taxable receipts or income, and shall be subject to interests, fines and penalties under Sections 248(B), 249(B), 253, and 255 of the National Internal Revenue Code of the Philippines.

 After two (2) years or upon a determination that the threat of COVID-19 has been successfully contained or abated, whichever comes first, the revenues derived from franchise taxes on gross bets or turnovers under paragraph (f) and income from non-gaming operations under paragraph (g) shall continue to be collected and shall accrue to the General Fund of the Government. The BIR shall implement closure orders against offshore gaming licensees, operators, agents, service providers and support providers who fail to pay the taxes due, and such entities shall cease to operate.

Section 12. Procurement of COVID-19 Drugs and Vaccine. — Notwithstanding any law to the contrary, the requirement of Phase IV trials for COVID-19 medication and vaccine stipulated in the Universal Health Care Law is hereby waived to expedite the procurement of said medication and vaccine: Provided, That these are recommended and approved by the WHO and/or other internationally recognized health agencies: Provided, further, That the minimum standards for the distribution of the said medication and vaccine shall he determined by the FDA and HTAC, as may be applicable: Provided, furthermore, That nothing in this Act shall prohibit private entities from conducting research, developing, manufacturing, importing, distributing or selling COVID-19 vaccine sourced from registered pharmaceutical companies, subject to the provisions of this Act and existing laws, rules and regulations: Provided, finally, That this section shall remain in effect three (3) months after December 19, 2020.

Section 13. Report to Congress. - Within one (1) week from the effectivity of this Act, the DOH shall present a report to Congress detailing an improved COVID-19 surveillance and control plan, which shall include improvements to data monitoring and communication, instilling of proper COVID related conduct in the public, and controlling the spread of the virus particularly in areas with high disease transmission, among others.

Section 14. Reportorial Requirement and Creation of an Oversight Committee. — The President, every first Monday of the month, shall submit a monthly report to Congress and to the Commission on Audit (COA) of all acts performed pursuant to this Act during the immediately preceding month including a report on the targets and actual accomplishments of government programs, strategies, plans, and efforts relative to the COVID-19 pandemic as well as relevant and more granulated health-related data, and such other information which Congress and COA may require. The terms and conditions of any loan entered into by the government to finance the programs and projects to implement this law shall likewise be included in the Report. The Report shall also contain detailed BESF tables for COVID-19, similar to the BESF tables submitted to Congress by the Development Budget Coordination Committee.

For this purpose, the Congress shall establish a Joint Congressional Oversight Committee composed of four (4) members of each House to be appointed by the Senate President and the House Speaker, respectively. This Committee shall determine whether such acts, orders, rules and regulations are within the restrictions provided herein.

Section 15. Construction, or Interpretation. - Nothing herein shall be construed as ah impairment, restriction or modification of the provisions of the Constitution. In case the exercise of the powers herein granted conflicts with other statutes, orders, rules or regulations, the provisions of this Act shall prevail.

Section 16. Separability Clause. - If any provision of this Act or the application of such provision to any person or circumstance is declared invalid, the remainder of this Act or the application of such provision to any other person or circumstance shall not be affected by such declaration.

Section 17. Repealing Clause. - Republic Act No. 11469 is repealed upon the adjournment of the First Regular Session of the Eighteenth Congress, in accordance with Article VI, Section 23(2) of the Constitution. All laws, acts, decrees, executive orders, issuances, and rules and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby repealed, amended or modified accordingly.

Section 18. Effectivity. - Except as otherwise specifically provided herein, this Act shall be in full force and effect until the next adjournment of the Eighteenth Congress on December 19, 2020. This Act shall take effect immediately upon its publication in a newspaper of general circulation or in the Official Gazette: Provided, That Section 4(cc) of this Act shall be deemed to be in effect since Republic Act No. 11469 expired.

Approved,

This Act which is a consolidation of Senate Bill No. 1564 and House Bill No. 6953 was passed by the Senate of the Philippines and the House of Representatives on August 20, 2020 and August 24, 2020, respectively.

Approved: SEP 11 2020

(SGD.) RODRIGO ROA DUTERTE
President of the Philippines