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Republic of the Philippines

HOUSE OF REPRESENTATIV! = WN TY
Quezon City pareSO JUN 2016

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17" CONGRESS py. fla?
First Regular Session
REGISTR VON 1
HOUSE BILLNO. 432. | pus ites pelle

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

This bill seeks to amend Section 6 of Republic Act No. 1169, as amended,

Section 6 provides the allocation of PCSO’s net receipts (gross receipts less the

printing cost of tickets not to exceed two percent of such gross receipts) which is basically
divided into a 55% - 45% distribution. ‘The former is earmarked to winnings and prizes, the
latter the charity fund, and operating expenses and capital expenditure, The PCSO Board of
Directors (the “Board”) is empowered to make payment and grant from the charity fund,
which is a minimum of 30% of net receipts. Moreover, the Board is also authorized to
allocate, a minimum of 15% of net receipts, for operating expenses and capital expenditures.

This bill proposes that the said discretionary powers of the Board be contained, if not

removed, and that the charity fund be already specifically earmarked based on the policies set
forth in RA No. 1169, as amended. In like manner, the Board’s power of allocation over the
15% is to be expressly subjected to the approval of the Office of the President.

It is believed that with this amendment, the PCSO’s charity fund will be distributed in

accordance with specific and real needs grounded on justice and equity, It eradicates the lack
of institutionalized criteria and standard in the disposition of funds, where arbitrariness has
always led to abuse. In addition, the charity fund will become transparent as it finances as
well certain legislations enacted by Congress.

In view of the foregoing, passage of this bill is earnestly requested



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon

17" CONGRESS
First Regular Session

HOUSE BILL NO._ 433 *

Introduced by REP, EVELINA G. ESCUDERO

AN ACT
INSTITUTIONALIZING A JUST AND EQUITABLE DISPOSITION OF THE
PHILIPPINE CHARITY SWEEPSTAKES OFFICE CHARITY FUND, AMENDING
FOR THAT PURPOSE SECTION 6 OF REPUBLIC ACT NO, 1169, AS AMENDED.

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

SECTION 1. Section 6 of Republic Act No. 1169, as amended, is hereby further
amended to read as follows:

“SECTION 6.Allocation of Net Receipts. - From the gross receipts from the
sale of sweepstakes tickets, whether for sweepstakes races, lotteries, or similar
activities, shall be deducted the printing cost of such tickets, which in no case shall
exceed two percent of such gross receipts to arrive at the net receipts, The net receipts
shall be allocated as follows:

A, Fifty-five percent (55%) shall be set aside as a prize fund for the
payment of prizes, including those for the owners, jockeys of running horses,
and sellers of winning tickets:

Prizes not claimed by the public within one year from date of draw
shall be considered forfeited, and shall form part of the charity fund for
disposition as stated [below.JUNDER THE SUCCEEDING PARAGRAPHS.

B. Thirty percent (30%) shall be set aside as contributions to the
charity fund WHICH SHALL BE EARMARKED AS FOLLOWS: [{rom
which the Board of Directors, in consultation with the Ministry of Human
Settlement on idemtified priority programs, needs, and requirements in specific
communities and with approval of the Office of the President (Prime
Minister), shall make payments or grants for health programs, including the
expansion of existing ones, medical assistance and services and/or charities of
national character, such as the Philippine National Red Cross, under such
policies and subject (0 such rules and regulations as the Board may from time
establish and promulgate].

1 20% AMBULANCE, INCLUSIVE OF REPAIR AND
MAINTENANCE, AND OTHER METHODS OF
CONDUCTION/CONVEYANCE OF PATIENTS;

1


a 20% PHILIPPINE HEALTH INSURANCE
CORPORATION, FOR UNIVERSAL PHILHEALTH COVERAGE;

3. 20% CHARITY CLINIC, MEDICAL ASSISTANCE AND
SERVICE PROGRAM, TO PRIVATE HOSPITALS;

4. 20% DEPARTMENT OF HEALTH, INCLUDING
REGIONAL, DISTRICT AND PROVINCIAL HOSPITALS;

& 20% PRESIDENT’S SOCIAL FUND.

THE ABOVE ALLOCATION, TO ENSURE EQUITY AND
FAIRNESS, SHALL BE SI 'T AND DISTRIBUTED ON A PRIORITY
BASIS IN ACCORDANC! WITH THE LATEST NATIONAL
STATISTICAL COORDINATION BOARD (NSCB) DATA ON
POPULATION AND POVERTY MAPPING, STARTING WITH THE
POOREST IN THE COUNTRY.

The Board may apply part of the contributions to the charity fund to
approved investments of the Office pursuant to Section 1 (B) hereof, but in no
case shall such application to investments exceed ten percent (10%) of the net
receipts from the sale of sweepstakes tickets in any given year.

Any property acquired by an institution or organization with funds
given to it under this Act shalll not be sold or otherwise disposed of without the
approval of the Office of the President (Prime Minister), and that in the event
of its dissolution all such property shall be transferred to and shall
automatically become the property of the Philippine Government.

C. Fifteen (15%) percent shall be set aside as contributions to the
operating expenses and capital expenditures of the Office SUBJECT TO THE
APPROVAL OF THE OFFICE OF THE PRESIDENT.

D. All balances of any funds in the Philippine Charity Sweepstakes
Office shall revert to and form part of the charity fund provided for in
paragraph (B), and shall be subject to disposition as above stated.

The disbursements of the allocation herein authorized shall be subject
to the usual auditing rules and regulations, [As amended by Batas Pambansa
Big. 42 dated 24 September 1979]."

SEC. 2. All laws, presidential decrees, executive orders, proclamations and/or
administrative regulations which are inconsistent with the provisions of this Act are hereby
amended, modified, superseded or repealed accordingly.

This Act shall take effect fifteen (15) days from its publication in the Official

Gazette or at least three (3) newspapers of national circulation.

Approved,