Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3936

HOUSE BILL NO.,

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

Article II Section 15 of the 1987 Philippines Constitution explicitly provides:

“The State shall protect and promote the right to health of the people and
Instill health consciousness among them.”

At present, it is without a doubt that the country’s health spending is grossly inadequate.

In addition, as the population continues to grow many of the public hospitals are
increasingly deteriorating in term of medical equipment and facilities. For this reason
affected the quality of healthcare and medical services among Filipinos specifically the
indigent people is adversely affected.

‘There are some government agencies or government owned and controlled corporations
Whose incomes are subject for inquiry due to the non-transparency of their utilization,
foremost of which is the Philippines Amusement and Gaming corporation (PAGCOG).
Some of the Corporation's charter has not been amended since the year 2007.

This bill seeks to amend the PAGCOR charter by allocating fifty percent (50%) share of the
national government in the aggregate gross earning of the Corporation to fund the
modernization of public health infrastructure, to include all district, provincial and regional
hospitals in the Philippines. This allocation is for the modernization of medical equipment
and facilities, including an increase in bed capacity, and providing an additional fund for
the procurement of necessary medicines. Lastly, the issue on transparency with regard to
the utilization of PAGCOR’s income shall be addressed accordingly.

In view of the foregoing, the immediate enactment of this measure is earnestly sought.

ae. .


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3936
HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT MODERNIZING PUBLIC HEALTH INFRASTRUCTURE, PROVIDING
FUNDS FROM THE PHILIPPINES AMUSEMENT AND GAMING CORPORATION
(PAGCOR) INCOME, AMENDING FOR THE PURPOSE PRESIDENTIAL
DECREE NO. 1869, AS AMENDED BY REPUBLIC ACT NO. 9487

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

SECTION 1, Section 1 of Presidential Decree No. 1869, as amended by Republic Act No.
9487 is hereby further amended to read as follows:

“Section 1. Declaration of Policy. - It is hereby declared to the State to Centralize and
integrate all games of chance heretofore authorized by existing franchises or permitted by
law in order to attain the following objective:

a) To centralize and integrate the right and authority to operate and conduct games
of chance into one corporate entity to be controlled, administered and
supervised by the Government;

b) To establish and operate clubs and casinos, for amusement and recreation,
including sports gaming pools (basketball, football, lotteries, etc.) and such other
forms of amusement and recreation including games of chance, which may be
allowed by law within the territorial jurisdiction of the Philippines and which
will generate sources of additional revenue FOR THE MODERNIZATION OF
PUBLIC HEALTHCARE AND HEALTH INFRASTRUC TURE; ( to infrastructure and
socio-civic projects, such as flood control programs, beautification, sewerage and
sewerage projects, Tulungan ng Bayan Centers, Nutritional Programs,
Population Control and such other essential public services)

©) {(2)} T0 create recreation and integrated facilities which will expand and
improve the country’s existing tourist attractions; AND

4) {(3)} TO create {minimize, if not totally] eradicate the evils, malpractices and
corruptions that are normally prevalent in the conduct and operation of
gambling clubs and casinos without direct government involvement.”



SECTION 2. Section 7 of presidential Decree No. 1869, as amended by Republic Act No.
9487 is hereby further amended to read as follows:

“Section 7. Powers. Functions and Duties of the Board of Directors. The Board shall
have the following powers, functions and duties;

a)

b)

dd)

To allocate and distribute, with the approval of the Office of the President of the
Philippines, the earning of the Corporation AS APPROVED FOR BY LAW
{earmarked to finance infrastructure and socio-civic projects};

‘To designate the commercial bank that shall act as the depository bank of the
Corporation and/or trustee of the funds of the Corporation;

To prepare and approve at the beginning of each calendar year the budget that
may be necessary under any franchise granted to it, to insure the smooth
operation of the Corporation; and to evaluate and approve budgets submitted to
it by other Corporations or entities with which it might have any existing
contractual arrangement; AND

To submit to the Office of the President of the Philippines before the end of
February of each year a list of all the infrastructure and/or socio/civic projects
that might have been financed trom the Corporation's earnings, and to submit
such periodic or other reports as may be required of it from time to time; and}

D) {(e)] To perform such other powers, functions and duties as may be directed
and authorized by the President of the Philippines or as may be necessary or proper for
the accomplish of its purpose objectives.”

e)

8)

Load Credits - shall refer to the monetary value or the consumable amount
loaded to a mobile or landline phone via prepaid cards or electronic transfer that
enable a Consumer to use telecommunication services.

Prepaid ~ shall refer to the type of mobile or landline phone account that
requires its owners to purchase load credits before services are used.

Prepaid Call ~ shall refer to a card with corresponding peso value that has to be
purchased to enable a subscriber to use telecommunication services.

SECTION 3. Section 12 of Presidential Decree No. 1869, as amended by Republic Act No.
9487 is hereby further amended to read as follows;

Section 12, Special Condition of Franchise - After deducting five percent (5%) as
Franchise Tax, the Fifty Percent (50%) share of the Government in the aggregate gross
earnings of the corporation from this Franchise shall be immediately set aside and
allocated to fund the MODERNIZATION OF PUBLIC HEALTH INFRASTRUCTURE THROUGH


ollowing: [infrastructure and socio-civil] projects within the Metropolitan Manila
Area:

a) Flood Control

b) Sewerage and Sewage

c) Nutritional Control

d) Population Control

¢) Tulong ng Bayan Centers

f) Beutification

g) Kilusang Kabuhayan at kaunlaran (KKK) projects; provided, that should the
aggregate gross earnings be less than P150,000.00, the amount to be allocated to fund
the above-mentioned project shall be equivalent to sixty percent (60%) of the aggregate
gross earnings.

In addition to the priority infrastructure and socio-civic projects with the
Metropolitan Manila specifically enumerated above, the sare of the Government in the
aggregate gross earning derived by the Corporate from this Franchise may also be
appropriated and allocated to fund and finance infrastructure and/or socio-civic project
throughout the Philippines as may be directed and authorized by the Office of the President
of the Philippines.}

A) ACQUISITION AND/OR UPGRADE OF MEDICAL EQUIPMENT AND
FACILITIES OF ALL DISTRICT, PROVINCIAL AND REGIONAL
HOSPITALS IN THE COUNTRY;

B) REQUIUREMENTS FOR THE INCREASE OF BED CAPACITY OF ALL

DISTRICT, PROVINCIAL AND REGIONAL, HOSPITALS IN THE.

COUNTRY; AND.

PROCUREMENT OF MEDICINE IN ALL DISTRICT, PROVINCIAL AND

REGIONAL HOSPITALS AS LISTED IN THE REGISTRY OF DOH;

PROVIDED, THAT THE SUBJECT FUNDS SHALL NOT BE UTILIZED

FOR THE PAYMENT OF PERSONAL SERVICES EXPENDITURES

SUCH AS SALARIES, ALLOWANCES AND OTHER PERSONNEL

COMPENSATION: PROVIDED FUTHER, THAT THE EQUAVALENT

AMOUNT NEEDED FOR PERSONAL SERVICES SHALL BE

INCLUDED IN THE GENERAL APPROPRIATIONS ACT (GAA) UNDER

THE BUDGET OF DOH OR LOCAL GOVERNMENT FUNDS.

¢

SECTION 4. Implementing Rules and Regulations (IRR). Within sixty (60) days upon
Effectivity of this Act, the PAGCOR, the DOH and the Department of Budget and
Management (DBM) shall provide the necessary rules and regulations for the proper
disposition of the said funds and the effective implementation of this Act.

SECTION 5.Repealing Clause. All laws, rules regulations or parts thereof inconsistent
With the provisions of this Act are hereby repealed or modify accordingly.

SECTION 6.Separability Clause. | any part, section or provision of this Act shall be held
Invalid or unconstitutional, on other part, section or provisions thereof shall be affected
there by.


SECTION 7. Effectivity. This Act shall take effect fifteen (15) days following the completion
Ofits publication in the Official Gazette or two (2) newspapers of general circulation.

Approved,