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FIFTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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SENATE 
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S.B.No. 3092 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
The Philippine Sports Commission (PSC) was created by virtue of Republic Act No. 6847 way back 
in January of 1990, It was intended as the lead entity that shall oversee, reform, and jumpstart the 
state of Philippine sports. However, twenty one (21) years after its existence, the expected 
improvement and development of Philippine sports under the PSC still is wanting, 
The PSC failed to neither surpass nor even just approximate the many successes that the country 
produced in the field of sports with the likes of Akiko Thompson, Lydia De Vega, Elma Muros, 
Paeng Nepomuceno, Eric Buhain, and Efren "Bata" Reyes, among many others. Issues like lack of a 
comprehensive national sports program, obsolete training methods, the lack of state-of-the art 
facilities and modern equipment are seen as the culprit in the country's poor performance in various 
international competitions, 
This bill seeks to create a Department of Sports that shall take the lead in providing the much needed 
leadership in sports development in the Philippines. The Department of Sports, a cabinet-level 
agency, shall provide necessary impetus, direction, and policy guidance in order to improve the 
performance of the country in international sporting events and competitions, Said agency shall 
likewise take the lead in developing Filipino athletes to their fullest potentials, 
It is hoped that once the Department of Sports is established, sports would once again become an 
integral component of youth development, a galvanizing force for National Unity, and a source of 
national pride, 
In view of the foregoing, approval of this measure is earnestly sought 
ANTONIO "SONNY" F, TRILLANES IV 
Senator 
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FIFTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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'12 
JAN -4 ? 7 :()1 
SENATE 
HE 
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S.B.No. 3092 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
CREATING THE DEPARTMENT OF SPORTS, DEFINING ITS POWERS AND 
FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
ARTICLE I 
GENERAL PROVISIONS 
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SECTION 1. Short Title. - This Act shall be known as "Department of Sports Act of 
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2012". 
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SEC. 2. Declaration of Policy. - It is the policy of the State to promote and sustain 
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fitness, physical education and sports development in the country, As such, it shall maintain and 
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provide equal access to resources, services and facilities related to sports to all Filipinos to foster 
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and promote health and physical fitness, self-discipline, teamwork, excellence, peace and 
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camaraderie, youth development, and people empowerment through sports. 
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It shall also encourage wider participation of all sectors, including the government and 
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private sector, in amateur sports promotion and development and shall be led by a single, unified 
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and integrated national sports policy-making body. 
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ARTICLEn 
DEPARTMENT OF SPORTS 
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SEC. 3. Creation of the Department of Sports. - There is hereby created the Department 
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of Sports, hereinafter referred to as the "Department", which shall carry out the above-declared 
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policy and assume the promotion and development of sports and physical fitness in the country. 
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SEC. 4. Mandate. - The Department shall be the primary policy, planning, coordinating, 
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implementing, regulating and administrative entity of the executive branch of the Government 
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that will plan, promote and help develop sports and physical fitness in the country. 
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SEC. 5. Objectives of tlte Department. - The objectives of the Department are the 
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following: 
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a) to prepare, formulate, implement and oversee an integrated sports promotion and 
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development program for the Philippines in consultation with the stakeholders as well 
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as other government agencies, non-government organizations, associations and 
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groups involved in sports; 
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b) to promote a nationwide grassroots-based sports development program and strengthen 
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the sports club system; 
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c) to encourage the participation of Filipino athletes in regional and international sports 
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competitions including but not limited to the South East Asian Games, the Asian 
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Games, the Olympics, the Paralympics, the Universiade or World University Games 
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as well as international, regional and world competitions staged by other reputable 
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international sports associations, federations andlor organizations; 
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d) to provide leadership in the development of sports in the Philippines, formulate the 
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policies and set the priorities and direction of all national amateur sports promotion 
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and development, particularly giving emphasis on grass-roots development and 
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participation; 
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e) to encourage wider participation of all sectors, including the government and the 
private sector, in amateur sports promotion and development especially among the 
Filipino youth; 
f) to improve the performance of Filipino athletes in regional and international sports 
competition and develop athletes to become a source of national pride; 
g) to provide resources, services and facilities to enable Filipinos to pursue and achieve 
excellence in sport while also furthering other aspects of their personal development; 
h) to foster peace and camaraderie within the country thru competitive and recreational 
sports; 
i) to improve the sporting abilities of Filipinos generally through the improvement of 
the standard of sports coaches; 
j) to foster cooperation in sports between the Philippines and other countries through the 
provision of access to resources, services and facilities related to sports; and 
k) to supplement government appropriations for sports promotion and development by 
encouraging the private sector to contribute in the funding of the various programs of 
the Department. 
SEC. 6. Functiofts of tlte Department. - The Department shall perform the following 
functions: 
a) to advise the President on all matters pertaining to sports in general; 
b) to prescribe the criteria and standards for the recognition of national sports 
associations in different sports in the Philippines; 
c) to prescribe criteria and standards for the participation of athletes and teams in 
international competitions; 
d) to coordinate the activities of, and to facilitate cooperation among, the various sectors 
involved in sports, including among others, the National Sports Associations, public 
and private schools, government corporations and entities, local government units, the 
Armed Forces of the Philippines, and other sports organizations and private 
corporations; 
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e) to encourage and organize, in consultation with the national sports associations and 
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related organizations, national, regional and international sports competitions, events 
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and games; 
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f) to develop and implement programs for the recognition and development of: 
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persons who excel, or who have the potential to excel, in sport; and 
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persons who have achieved, or who have the potential to achieve, standards 
of excellence as sports coaches, umpires, referees or officials essential to 
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the conduct of sports; 
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g) to plan and promote physical education in the Philippines; 
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h) to initiate, encourage and facilitate research and development in relation to sports; 
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i) to undertake research and development related to sports science and sports medicine 
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and to prepare and publish such reports or periodicals on these matters as it thinks fit; 
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j) to provide sports medicine services and sports science services to persons 
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participating in programs of the Department; 
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k) to establish, develop and maintain fully-equipped sports facilities and centers in 
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strategic places in the country and, as far as practicable, such modern sports 
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complexes adequate for major international and regional competitions, events and 
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games; 
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I) to rationalize and regulate the establishment of publicly-funded sports complexes and 
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supervise the management and maintenance thereof, excluding school or college-
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owned sports complexes; 
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m) to collect and disseminate infonnation, and provide advice, on matters related to the 
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activities ofthe Department; 
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n) to plan and formulate policies and programs and review or evaluate, from time to 
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time, the organizational set-up, projects and programs of the Department; 
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0) to assist the proper government agency in the fonnulation of an industry incentives 
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program for the manufacture in the Philippines of sports equipment and supplies of 
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international standard and quality; 
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p) to recommend and propose to the Department of Education, Department of Interior 
and Local Government and other government agencies and instrumentalities having 
their own sports programs, to incorporate in their respective annual budgets a separate 
and specific budget for sports promotion and development; 
q) for the purpose of fostering cooperation in sports between the Philippines and other 
countries, to provide access to persons from other countries to the resources, services 
and facilities of the Department; 
r) to provide advice on matters related to sports to persons, bodies or associations 
involved in sports; 
s) to cooperate with national and international sporting organizations in fostering an 
environment that· is free from the unsanctioned use of performance enhancing drugs 
and doping methods; 
t) to encourage, promote and sustain the creation and establishment of regional, 
provincial, municipal and barangay or school district sports promotion and 
development councils, composed of officials of the Department of Education, 
Department of Interior and Local Government, local government officials, and 
representatives of the private sector, which shall initiate, conduct and coordinate 
sports activities in their respective jurisdictions; and 
u) to exercise such other acts as are necessary or incidental to and/or are appropriate and 
proper in connection with the creation of the Department. 
SEC. 7. Powers o/the Department. - The Department has the power to do all acts and 
things necessary to be done for or in connection with the performance ofits functions, including: 
a) to appoint the officers and other personnel of the Department and fix their 
compensation subject to existing laws, rules and regulations; 
b) to delegate authority for the performance of any function to officers and employees 
under its direction; 
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c) appoint committees consisting of persons who mayor may not be members of the 
Department and delegate to such committees such of its functions as the Department 
may determine; 
d) to enter into contracts; 
e) recommend minimum standards for participation in international sports competitions 
and games; 
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advise on the planning, promotion and standards of physical education; 
g) to acquire, use and control any land, building, facilities, equipment, instruments, tools 
and rights required or otherwise necessary for the accomplishment of the purposes of 
the Department; 
h) to acquire, own, possess and dispose of any real or personal property; 
i) to regulate the acquisition, procurement, distribution and use of sportswear, 
equipment, instruments, tools and other sports necessities necessary and required for 
training of a national pool of athletes; 
j) to assist and support national sports associations in the implementation of Section 37 
of this Act; 
k) to confer, extend and grant awards, benefits and privileges to athletes, coaches and 
officials for outstanding performances in national and international competitions; 
I) to confer, extend and grant support or assistance to sports associations which are in 
good standing with the Department; 
m) to exercise supervisory and visitorial powers over the national sports associations in 
connection with their sports promotion and development programs with respect to 
which financial assistance is extended by the Department; 
n) to accept donations, gifts, bequests, and grants for the purposes of the Department; 
0) to ensure the implementation by various government departments and agencies of 
their sports promotion and development programs as indicated in their respective 
annual budgets; 
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p) to impose sanctions upon any national sports association, institution, association, 
body, entity, team, athlete and sports official for violation of its policies, rules and 
regulations; and 
q) to perform any and all other acts incident to or required by virtue of its creation. 
SEC. 8. Composition of the Department. - The Department of Sports shall be headed by 
a Secretary. The Department proper shall be composed ofthe Office of the Secretary, the offices 
of the Undersecretaries and the Assistant Secretaries. 
SEC. 9. Secretary of Sports. - The Secretary shall be appointed by the President, subject 
to confirmation by the Commission on Appointments. 
The Secretary shall have the following functions: 
a) 
Provide executive direction and supervision over the entire operations of the 
Department and its attached agencies; 
b) 
Establish policies and standards for the effective, efficient and economical 
operation of the Department, in accordance with the programs of the Government; 
c) 
Rationalize delivery systems necessary for the effective attainment of 
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objectives of the Department in accordance with the programs of the Government; 
d) 
Review and approve request for financial and manpower resources of all 
operating offices of the Department; 
e) 
Designate and appoint officers and employees of the Department, excluding the 
Undersecretaries, Assistant Secretaries, and Regional and Assistant Regional Directors, 
in accordance with the Civil Service laws, rules and regulations; 
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Coordinate with LGUs, other agencies and public and private interests groups, 
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including non-government organizations (NGOs) and people's organizations (POs) on 
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Department policies and initiatives; 
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Advice the President on the promulgation of executive and administrative orders 
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and regulatory and legislative proposals on matters pertaining to the promotion and 
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development of sports and physical fitness in the country; 
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Formulate such rules and regulations and exercise such other powers as may be 
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required to implement the objectives of this Act; 
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Perform such other tasks as may be provided by Law or assigned by the President 
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from time to time. 
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SEC. 10. Undersecretaries. -
The Secretary shall be assisted by three (3) 
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Undersecretaries, who shall be appointed by the President upon the recommendation of the 
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Secretary: provided that one (I) of the Undersecretaries shall be a career officer coming from 
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ranks of existing government institution or office on sports or qualified individuals in the private 
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sector who actively supports the promotion and development of sports in the country. 
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SEC. 11. Assistant Secretaries. - The Secretary shall be assisted by three (3) Assistant 
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Secretaries who shall be career officers appointed by the President upon the recommendation of 
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the Secretary. 
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SEC. 12. Qualifications. - No person shall be appointed Secretary, Undersecretary or 
Assistant Secretary of the Department unless he is a citizen and resident of the Philippines, 
publicly-recognized personalities in the field of sports, at least thirty (30) years of age, of good 
moral character, and of proven integrity. 
SEC. 13. Regional Offices. - The Department shall be authorized to establish, operate, 
and maintain Regional Office in each of the administrative regions of the country as the need 
arises. The regional office shall be headed by a Regional Director, who may he assisted by one 
(1) Assistant Regional Director. The Regional Offices shall have, within their respective 
administrative regions, the following functions: 
a) 
Implement laws, policies, plans, programs, projects, rules and regulations of the 
Department; 
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Provide efficient and effective service to the people; 
Coordinate with regional offices of other departments, offices, and agencies; 
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Coordinate with LGUs; 
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Perform such other functions as may be provided by law or assigned by the 
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Secretary. 
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SEC. 14. Transfer of Agencies and Personnel. - The Philippine Sports Commission 
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(PSC) is hereby abolished, and their powers and functions, applicable funds and appropriations, 
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records, equipment, property, and personnel shall be transferred to the Department. 
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The laws and rules on government reorganization as provided for in Republic Act No. 
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6656, otherwise known as the Reorganization Law, shall govern the reorganization process of 
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the Department. 
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SEC. 15. Separation from Service. - Employees separated from the service as a result of 
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this reorganization shall, within ninety (90) days therefrom, receive the separation and retirement 
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benefits to which they may be entitled under Executive Order No. 366. Provided that such 
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separation pay and retirement benefits shall have priority of payment out of the savings of the 
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department or agency. 
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SEC. 16. Structure and Staffing Pattern. - The Department shall determine its 
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organizational structure and create new divisions or units as it may deem necessary, and shall 
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appoint officers and employees of the Department in accordance with the Civil Service Law, 
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rules, and regulations. 
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SEC. 17. Regular Bureaus, Divisions and Offices. - The Department shall organize 
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bureaus, divisions, and offices in such manner as would best carry out the declared policies and 
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objectives enunciated herein and consistent with the provisions of civil service laws, rules, and 
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regulations. There shall be an administrative services bureau, which shall be primarily 
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responsible for providing services related to financial management, personnel, records, supplies 
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and equipment, and a support services bureau, which shall be primarily responsible for plans and 
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programs formulation, research, EDP and system management, public information and 
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production, transportation, communications and such other functions and responsibilities as may 
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be necessary and required by the Department. 
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SEC. 18. Specialized Bureaus. - In addition, there are hereby created three (3) 
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specialized bureaus under the Department to ensure the proper implementation of this Act: (a) 
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the Amateur Sports Development Bureau; (b) the International Sports Development Bureau; and 
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(c) the Professional Sports Bureau, all of which shall be headed by Deputy Executive Directors. 
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ARTICLE III 
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AMATEUR SPORTS DEVELOPMENT BUREAU 
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SEC. 19. Amateur Sports Development Bureau. - The Amateur Sports Development 
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Bureau shall be primarily responsible for the promotion and development of amateur sports in 
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the Philippines. The Division of Amateur Sports shall have authority over all matters relating to 
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amateur sports. 
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SEC. 20. Functions. - The Amateur Sports Development Bureau shall have the 
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following functions: 
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a) Plan, implement and encourage a mass-based sports and physical fitness, program for 
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the youth, senior citizens, the disabled and the entire citizenry, through the promotion 
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of a sports club system and of amateur sports in formal and informal setting; 
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b) Promote social and cultural integration through the revival of traditional and 
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indigenous games and sports; 
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c) Identify and nurture sports talents for further development and promote excellence in 
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sports, traditional games and other physical activities; 
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d) Recommend to the Department the formulation of policies and programs that will 
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foster the development of amateur sports in the grassroots level; 
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e) Impose sanctions on any national sports association, institution, association, body, 
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entity, team, athlete and sports official engaged in amateur sports for violation of its 
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policies, rules and regulation. 
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f) Exercise supervisory powers over the national sports associations in connection with 
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their sports promotion and development programs where financial assistance is 
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extended hy the Department; and 
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g) Ensure the implementation by various government departments and agencies of their 
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sports promotion and development programs as indicated in their respective annual 
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budgets. 
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SEC. 21. Divisions under the Amateur Sports Development Bureau. - To ensure 
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efficiency and specialization, there shall be established two main divisions under the Amateur 
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Sports Development Bureau: (a) the Grassroots Sports Development Division and (b) the Local 
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and National Sports Competition Division. 
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SEC. 22. Grassroots Sports Division. - The Grassroots Sports Development Division 
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shall have the following functions: 
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a) Formulate and implement (i) a physical fitness testing and evaluation program to 
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determine, monitor and establish a fitness profile of the different sectors of society, 
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and (ii) a grassroots developmental program in order to encourage, improve and 
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enhance the physical fitness and participation in sports of the citizens at the city, town 
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and barangay level; 
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b) Support the formation of sports clubs in schools, workplaces, cities and towns, 
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communities and barangays and the conduct of activities aimed at encouraging the 
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citizens to participate and successfully compete in sports and various physical 
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activities; 
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c) Provide technical assistance to grassroots sports stakeholders; 
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d) Coordinate with and assist the basic, tertiary and technical education institutions in 
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the implementation of their physical education and school sports development 
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curriculum, policies and programs; 
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e) Assist public and private educational institutions in the implementation of their 
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intramural sports program and encourage competition activities of between and 
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among grassroots sports clubs; and 
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f) Develop the criteria for and implement an awards and incentives scheme to encourage 
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mass grassroots sports 
participation, sustained involvement and excellent 
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performance in grassroots sports activities. 
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SEC. 23. Local and National Sports Competition Division. - The Local and 
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National Sports Competition Division shall have the following functions; 
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a) Plan and conduct regular formal and informal sports competitions at the local and 
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national levels; 
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b) Establish and implement a system for identifying and developing athletic talents for 
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inclusion in the Developmental Athletes' Pool; and 
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d) Plan, implement and administer all aspects of the training program and the 
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preparation and participation for international competition of the Developmental 
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Athletes' Pool. 
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ARTICLE IV 
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INTERNATIONAL SPORTS DEVELOPMENT BUREAU 
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SEC. 24. Establishment of International Sports Development Bureau. - A special 
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sports bureau to be known as the International Sports Development Bureau is hereby established 
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and created. It shall have the following functions: 
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a) Formulate and recommend the adoption of a national training and development 
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program for athletes participating in international competitions in all relevant sports, 
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in coordination and cooperation with the concerned national sports associations; 
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b) Plan, implement and administer all aspects to ensure successful participation of the 
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country in regional and international sporting events, games and competitions; 
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c) To coordinate private and public sector support for the country's athletes who are 
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participating in international competitions; and 
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d) Ensure the availability of adequate budget, funds and resources for said purposes. 
SEC. 25. Divisions of the International Sports Development Bureau. - The 
Division of the International Sports Development Bureau shall be composed of: (a) the National 
Sports Association Affairs Division and (b) the International Sports Competition Division. 
SEC. 26. Functions of the National Sports Association Affairs Division. - The 
National Sports Association Affairs Division shall have the following functions: 
a) Process, facilitate and oversee agreements and transactions conducted between and 
among the Department, National Sports Associations and other local and international 
sports institutions, federations, associations and organizations to ensure their 
compliance with the policies and programs ofthe Department; 
b) Facilitate all necessary arrangements for the participation of national teams m 
international competition; 
c) Develop, prescribe and ensure the observance of criteria and standards for athletes 
and athletic teams representing the country in international competitions; 
d) Prescribe the criteria for selecting individuals, associations or clubs entitled to 
financial and/or other forms of support to enable their participation in international 
conferences, seminars, clinics, competitions and similar programs; and 
e) Establish appropriate linkages with international sports bodies. 
SEC. 27. The International Sports Competition Division. - The following shall be 
the functions of the International Sports Competition Division: 
a) Oversee the preparation and training ofthe members of the National Athletes' Pool in 
consultation and cooperation with the national sports associations concerned; 
b) Develop, prescribe, and monitor the implementation of criteria for the selection and 
retention of members of the National Athletes' Pool supported by the Department; 
c) Monitor and conduct the time trials and periodic evaluation of members of the 
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National Athletes' Pool; 
d) Assist in the selection of national teams for international competitions; and 
e) Identify and recommend athletes, coaches and international sports participants who 
may qualify for awards and incentives. 
ARTICLE V 
TRANSITORY AND FINAL PROVISIONS 
SEC. 28. National Sports Associations. - National Sports Associations organized for 
respective sports in the Philippines and affiliated with their respective international 
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institutions, federations, associations or organizations, shall be recognized as such by the 
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Department in accordance with the standards and criteria prescribed by the Department after 
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ensuring that their charters, constitutions and by-laws and their policies and programs conform to 
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the policies laid down in this Act; prOVided, that the Department shall also recognize special 
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national sports associations to represent the differently-abled and school-based sports 
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associations which shall, for all intents and purposes, have the same status, privileges and 
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obligations as regular national sports associations. 
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The national sports associations recognized by the Department shall be autonomous and 
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shall have exclusive technical control over the promotion and development of the particular sport 
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for which they are organized, subject however to the supervisory and visitorial powers of the 
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Department. 
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Each national sports association shall, by its constitution and by laws, determine its 
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organization and membership: Provided, however, That no team, school, club, organization or 
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entity shall be admitted as a voting member of a national sports association unless sixty percent 
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(60%) of the athletes composing said team school, club, organization or entity are Filipino 
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citizens. 
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The Department recognizes the following functions, powers, duties and responsibilities of 
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the various national sports associations: 
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a) To adopt a Constitution and by laws not inconsistent with the 1987 Philippine 
Constitution and the provisions of this Act; 
b) To raise funds by donations, benefits and other means for their purposes; 
c) To purchase, sell, lease or otherwise encumber property, real or personal, for the 
accomplishment of their respective purposes; 
d) To conduct competitions for the promotion of their respective sports; 
e) To decide all questions on the status and discipline of the athletes and officials 
connected with the associations as well as the members thereof and all disputes 
between members; 
g) To select the athletes, coaches and other officials for their national teams in 
accordance with the standards and criterion prescribed by the Department, taking into 
consideration not only their athletic abilities but also their discipline, moral character, 
aptitude and attitude; 
i) To keep accurate records of all official marks, scores and results attained by the 
athletes in the associations in all competitions, as well as all results of sports 
competitions, recognize and confirm the same and furnish copies thereof to the 
Department; 
j) To qualify and license referees, umpires and other game officials who shall officiate 
in competitions in their respective sports; and 
k) To perform such other acts as may be necessary for the proper accomplishment of 
their purposes. 
SEC. 29. Tax Exemption on tlte Use of Sports Facilities. -
To encourage popular 
participation in amateur sports, no tax of any kind shall be levied on the use of sports facilities, 
whether the tax be on the user, owner or operator ofthe sports facility. 
SEC. 30. Tax Deduction or Exemption oj Donations and Contributions. -
All 
donations and contributions to the Department in connection with its fund-raising projects and its 
continuing sports development programs shall be exempt from the donor's taxes, and shall be 
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deductible in full in the computation of the taxable net income of the donor. Donations and 
contributions to the various national sports certified by the Department to be pursuant to the 
development of sports in the country shall likewise be exempt from the payment of the donor's 
and estate taxes and shall be deductible in full in computing the taxable net income of the donor. 
SEC. 31. Sports Delegations. -
The Department and its delegation or representatives to 
any international sports competitions, convention, conference, meeting and events, and athletes, 
coaches and other officials to any international competition shall be exempt from the payment of 
travel tax, airport tax and any other travel related taxes or fees now or hereafter imposed by law 
or regulation. 
SEC. 32. Presidential Land Grant. -
The provisions of any existing law to the contrary 
notwithstanding the President may, upon the recommendation of the Secretary of Environment 
and Natural Resources, grant by donation, sale, lease or otherwise, to the Department portions of 
the land of the public domain as may be necessary for the establishment of regional training 
centers in all the regions of the country and for the accomplishment of any of its purposes. 
SEC. 33. Sports Facilities. -
The administration and full control of all existing sports 
facilities, including land, buildings and equipment, owned by the national government as well as 
those owned by government-funded foundations, associations and entities except liabilities, shall 
be transferred to the Department: Provided, That the sports facilities owned by the local 
government units, state colleges and universities, or public schools shall remain with the said 
institutions or entities. 
All rental income from the sports equipment and facilities owned and operated by the 
Department shall be remitted directly to the Department to be used exclusively for the operation 
and maintenance of said equipment and facilities. 
SEC. 34. Assistance by the Government Entities. -
The Department may call upon any 
government entity for assistance in the performance of its functions and duties. All heads of 
departments, agencies, corporations and offices of the government are hereby enjoined to render 
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full assistance and cooperation to the Department to ensure the attainment of its objectives and 
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the success of the national sports development program. 
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SEC. 35. Integration of the Philippine Sports Commission. - The Philippine Sports 
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Commission created and established under Republic Act 6847 shall be integrated with the 
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Department of Sports within sixty (60) days from the enactment of this law. All power, 
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functions, duties and responsibilities of the Philippine Sports Commission not inconsistent with 
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the provisions of this Act shall continue to be exercised and perfonned by the Department. 
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Forthwith, the Philippine Sports Commission shall conduct an inventory of its assets and 
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liabilities, and shall turn over the same together with the inventory to the Department of Sports. 
II 
All programs, contracts and projects of the Philippine Sports Commission, which are 
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inconsistent with the policies and provisions of this Act shall be terminated on or before six (6) 
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months from the enactment of this law; Provided, that contracts, programs and projects which 
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cannot be unilaterally terminated shall remain in force and effect and the Department shall 
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negotiate for the rescission of the contract or termination of the project or program for a period 
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earlier than what has been previously agreed upon. 
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SEC. 36. Funding. -
In order to provide the necessary funds required for the 
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organizational and initial calendar year of operational expenditures of the Department, the 
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amount of Four hundred million pesos (P400,000,000.00) from the National Treasury is hereby 
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appropriated: Provided, That operating expenses for the Department itself shall not exceed 
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twenty percent (20%) of the armual appropriation and that at least eighty percent (80%) of said 
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annual appropriation and all of the national sports development funds, as hereinafter provided, 
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shall be disbursed for the national sports program, particularly in support of the identification, 
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recruitment and training of athletes in pre-regional, regional, national and international 
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competitions. 
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To finance the country's integrated sports development program, including the holding of 
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the national games and all other sports competitions at all levels throughout the country as well 
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as to carry out well-planned preparations to sustain the complete needs of national and 
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development athletes during the country's preparation and participation at international sports 
competitions, such as, but not limited to the Olympics, Asian Games, Southeast Asian Games, 
Paralympics, Universiade or World University Games and other international competitions 
sanctioned by international sports institutions, federations, organizations and associations, thirty 
percent (30%) of the charity fund of the representing the proceeds of six (6) lottery draws per 
annum of the Philippine Charity Sweepstakes Offices, taxes on horse races from ten (10) racing 
days to be determined by the Philippine Racing Commission and the Department, five percent 
(5%) of the gross income before taxes of the Philippine Amusement and Gaming Corporation, 
the proceeds from the sale of stamps as hereinafter provided shall be automatically remitted 
directly to the Department by the concerned entity and are hereby constituted as the National 
Sports Development Fund. Further, the Philippine Postal Corporation is hereby authorized to 
print paper and gold stamps which shall depict sporting events and such other motif as the 
Philippine Postal Service Office and the Department may agree on, at the expense of the 
Department. Any deficiency in the financial requirements of the Department for its national 
sports development program shall be covered by an annual appropriation passed by Congress. 
SEC. 37. Implementing Rules and Regulations. - The Department shall, within ninety 
(90) days after the approval of this Act, issue the necessary rules and regulations to implement 
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the provisions hereof. 
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SEC. 38. Annual Report. - The Department shall, within ninety (90) days after the end of 
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every fiscal year, submit to Congress an annual report on its compliance with, or 
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accomplishments under this act, together with its plans and recommendations to improve and 
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develop its capability to enforce the provisions of this Act, and a complete accounting of 
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transactions with respect to any funds received under this Act. 
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SEC. 39. Separability Clause. If any provision or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SEC. 40. Repealing Clause. - Republic Act No. 6847, otherwise known as the "T'l1e 
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Philippines Sports CommissIOn Act" is hereby repealed. All other laws, rules, regulations, orders, 
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circulars, and memoranda inconsistent with any provisions of this Act are hereby repealed or 
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modified accordingly. 
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SEC. 41. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete 
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publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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