FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
) 
) 
) 
SENATE 
3356 
S .B No. __ -=--c:.-.:,-=-
'!,I' 
INTRODUCED BY Senator TEUFISTO "TG" GUINGONA III 
EXPLANATORY NOTE 
The Philippine Charity Sweepstakes Office (PCSO) is considered the "principal 
government agency for raising and providing funds for health programs, medical 
assistance, and services, and charities of national character."j As its primary mandate is 
to provide funding for charity, the PC SO should not further be saddled with 
implementing the government's charitable programs. 
I 
Charitable programs sponsored by the government should be delegated to 
governme~t agencies with the expertise in and the familiarity with putting into 
operation health programs, medical assistance, and charities. To allow PC SO to focus 
singularly on revenue-generation, the health program should be managed by the 
Depmtment of Social Welfare and Development. By providing the PC SO more leeway 
to generate revenues for these programs- without the additional burden of concerning 
itself with the responsibility of ensuring their implementation - the PCSO will have the 
OPP01tunity to establish more efficient ways of increasing funding for its charitable 
pursuit. 
In view of the foregoing, the immediate enactme''''''''''''UIJ',,; measure is earnestly 
sought. 
1 Sec. 1, peso Charter, RA 1169 
"TG" GUINGONA III 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
) 
) 
) 
SENATE 
3356 
S.B. No. ____ _ 
'1' [,!f;-6 
cO (j :11 
INTRODUCED BY SenatOl' TEOFISTO "TG" GUINGONA III 
AN ACT 
TO FURTHER STRENGTHEN THE PCSO CHARTER AMENDING FOR THE 
PURPOSE Republic Act 1169, OTHERWISE KNOWN AS "AN ACT 
PROVIDING FOR CHARITY SWEEPSTAKES, HORSE RACES, AND 
LOTTERIES" AS AMENDED BY B.P. BLDG. 42 AND P.D. NO. 1157 
1 
SECTION 1. SECTION 1 OF REPUBLIC ACT 1169 HEREBY AMENDED TO 
2 
READ AS FOLLOWS: 
3 
4 
Section l. The Philippine Charity Sweepstakes Office - The Philippine 
5 
Charity Sweepstakes Office, hereinafter designated the Office, WHICH 
6 
SHALL BE UNDER THE CONTROL AND SUPERVISION OF 
7 
THE SECRETARY OF THE DEPARTMENT OF FINANCE, IS 
8 
TASKED TO RAISE AND PROVIDE [the principal government 
9 
agency for raising and providing for] funds for health programs AND 
10 
SOCIAL 
WELFARE 
AND 
DEVELOPMENT 
SERVICES 
11 
PROVIDED BY THE DEPARTMENT OF HEALTH AND THE 
12 
DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT, 
13 
RESPECTIVELY [medical assistance and services, and charities of 
14 
national character], and as such shall have the general powers conferred 
15 
in section thirteen of Act Numbered One thousand four hundred fifty-
16 
nine, as amended, and shall have the authority: 
17 
18 
A. To hold and conduct [charity sweepstakes races,] CHARITY 
19 
lotteries and other similar activities, in such frequency and manner, 
20 
as shall be determined, and subject to such rules and regulations as 
21 
shall be promulgated by the Board of Directors. 
22 
B. ASIDE 
FROM 
THE 
ACTIVITIES 
MENTIONED 
IN 
23 
PARAGRAPH (A), subject to the approval of the SECRETARY 


24 
OF THE DEPARTMENT OF FINANCE, [Minister of Human 
25 
Settlements] to [engage in health and welfare-related investments,] 
26 
INVEST IN programs, projects, and activities which ARE [may be] 
27 
profit-oriented, by itself or in collaboration, association, or joint 
28 
venture with any person, association, company or entity, whether 
29 
domestic or foreign, [except for the activities mentioned in the 
30 
preceding paragraph (A)], for the purpose of providing for 
31 
ADDITIONAL, permanent and continuing sources of funds for 
32 
health programs AND SOCIAL SERVICES PROVIDED BY 
33 
THE 
DEPARTMENT 
OF 
HEALTH 
AND 
THE 
34 
DEPARTMENT 
OF 
SOCIAL 
WELFARE 
AND 
35 
DEVELOPMENT, RESPECTIVELY. [including the expansion 
36 
of existing ones, medical assistance and services, and/or charitable 
37 
grants: Provided, That such investments will not compete with the 
38 
private sector in areas where investments are adequate, as may be 
39 
determined by the National Economic and Development Authority.] 
40 
41 
[c. 
To undertake any other activity that will enhance its funds 
42 
generation operations and funds management capabilities, subject to the 
43 
same limitations provided for in the preceding paragraph. ] 
44 
45 
It shall have a Board of Directors, hereinafter designated the Board, 
46 
composed of five members who shall be appointed, and whose 
47 
compensation and term of office shall be fixed, by the President (Prime 
48 
Minister). [Amended by Batas Pambansa Big. 42 dated 24 September 
49 
1979] 
50 
51 
SECTION 2. SECTION 3 OF REPUBLIC ACT 1169, AS AMENDED, IS 
52 
HEREBY REPEALED. 
53 
54 
SECTION 3. SECTIONS 4 AND 6 OF REPUBLIC ACT 1169, AS AMENDED, 
55 
ARE HEREBY REPEALED. 
56 
57 
SECTION 4. SECTION 6 OF REPUBLIC ACT 1169, AS AMENDED, IS 
58 
HEREBY AMENDED TO READ AS FOLLOWS: 
59 
60 
Section 6: Allocation of Net Receipts - [From] The gross receipts OF 
61 
IT,S 
OPERATIONS 
AND 
INVESTMENTS 
SHALL 
BE 
62 
ALLOCATED, ON A MONTHLY BASIS, AS FOLLOWS [from the 
63 
sale of sweepstakes tickets, whether for sweepstakes races, lotteries, or 
64 
similar activities, shall be deducted the printing cost of such tickets, 
65 
which in no case shall exceed two percent of such gross receipts to arrive 
66 
at the net receipts. The net receipts shall be allocated as follows]: 
67 


68 
A. [Fifty-five (55%)] THIRTY PERCENT (30%) shall be set aside as a 
69 
prize fund for the payment of prizes [including those] for the owners Uockeys of 
70 
rmming horses, and sellers] of winning tickets. THE USE AND MANAGEMENT OF 
71 
THIS FUND SHALL BE UNDER THE CONTROL OF THE DEPARTMENT OF 
72 
FINANCE. 
73 
74 
Prizes not claimed by the public within one year from date of draw shall 
75 
be considered forfeited, and shall form part of the charity fund for 
76 
disposition as stated below. 
77 
78 
B. [Thirty] FORTY percent (40%) [(30%) ] shall be set aside as 
79 
contributions to the charity fund AND THE USE AND MANAGEMENT 
80 
THEREOF SHALL BE UNDER THE CONTROL OF THE 
81 
DEPARTMENT OF HEALTH AND THE DEPARTMENT OF 
82 
SOCIAL WELFARE AND DEVELOPMENT: 20% FOR THE DOH 
83 
AND 20% FOR THE DSWD. THIS FUND SHALL BE USED FOR 
84 
THE HEALTH PROGRAMS AND SOCIAL WELFARE AND 
85 
DEVELOPMENT 
SERVICES 
OF 
THE 
DEPARTMENTS 
86 
MENTIONED. 
87 
88 
[from which the Board of Directors, in consultation with the Ministry of 
89 
Human 
Settlement on identified 
priority programs, 
needs, 
and 
90 
requirements, in specific communities and with approval of the Office of 
91 
the President (Prime Minister), shall make payments or grants for health 
92 
programs, including the expansion of existing ones, medical assistance and 
93 
services and/or charities of national character, such as the Philippine 
94 
National Red Cross, under such policies and subject to such rules and 
95 
regulations as the Board may from time establish and promulgate. The 
96 
Board may apply part of the contributions to the charity fund to approved 
97 
investment of the Office pursuant to Section I(B) hereof, but in no case 
I 
98 
shall such application to investments exceed ten percent (10%) of the net 
99 
redeipts from the sale of sweepstakes tickets in any given year.] 
100 
101 
Any property acquired by an institution or organization with funds given 
102 
to it under this Act shall not be sold or otherwise disposed of without the 
103 
approval of the Office of the President (Prime Minister), and that in the 
104 
event of its dissolution all such property shall be transferred to and shall 
105 
automatically become the property of the Philippine Government. 
106 
107 
C. [Fifteen (15%] THIRTY percent (30%) shall be set aside as contributions 
108 
to the operating expenses and capital expenditures of the Office. 
109 
110 
THE BOARD MAY APPLY PART OF THIS FUND TO APPROVED 
111 
INVESTMENTS OF THE OFFICE PURSUANT TO SECTION l(B) 


112 
HEREOF, BUT IN NO CASE SHALL SUCH APPLICATION TO 
113 
INVESTMENT EXCEED TEN PERCENT (10%) OF THIS PORTION OF 
114 
THE FUND. 
115 
116 
D. All balances, ACCRUED AT THE END OF YEAR, of any funds in the 
117 
Philippine Charity Sweepstakes Office shall revert to and form part of the 
118 
charity fund provided for in paragraph (B), and shall be subject to disposition as 
119 
above stated. 
120 
121 
The disbursements of the allocation herein authorized shall be subject to the 
122 
usual auditing rules and regulations. [As amended by Batas Pambansa Big. 42 
123 
dated 24 September 1979]. 
124 
125 
SECTION 5. SECTION 8 OF REPUBLIC ACT 1169, AS AMENDED, IS 
126 
HEREBY AMENDED TO READ AS FOLLOWS: 
127 
128 
Section 8. Acts penalized-
129 
130 
(8.1) The following shall be punished by imprisonment of not less than 
131 
one month and not more than three years: 
132 
133 
(a)1 Any person who, without being a duly authorized agent of the Office, 
134 
I sell tickets of the Office, or, being such agent, sell tickets, fractions or 
135 
coupons thereof not issued by the Office, representing or tending to 
136 
represent an interest in tickets issued by the Office. 
137 
(b) Any person who sells tickets issued by the Office at a price greater 
138 
than the price stated on the ticket. 
139 
(c) Any officer or employee of a hospital or other charitable or hygienic 
140 
institution or organization who uses funds obtained from the Office 
141 
under this Act for purposes other than those herein authorized. 
142 
143 
(8.2) 
MEMBERS OF THE BOARD AND ACCOUNTABLE 
144 
OFFICERS OF PCSO, WHO VIOLATE THEIR FIDUCIARY 
145 
DUTIES AS TRUSTEES OF A CHARITABLE TRUST SHALL BE 
146 
DISCIPLINED ADMINISTRATIVELY, WITHOUT PREJUDICE 
147 
TO THE FILING OF CRIMINAL CHARGES AGAINST THEM. 
148 
149 
ANY OFFICER OF EMPLOYEE WHO VIOLATES AND/OR 
150 
CAUSES ANOTHER TO VIOLATE ANY PROVISION OF 
151 
REPUBLIC ACT 1169 AND ITS AMENDMENTS SHALL BE 
152 
PUNISHED WITH IMPRISONMENT FOR NOT LESS THAN ONE 
153 
154 
155 
YEAR 
NOR 
MORE 
DISQUALIFICA TION 
CONFISCATION OR 
THAN 
TEN 
YEARS, 
PERPETUAL 
FROM 
PUBLIC 
OFFICE, 
AND 
FORFEITURE IN 
FAVOR OF THE 


156 
GOVERNMENT 
OF 
ANY 
PROHIDITED 
INTEREST 
AND 
157 
UNEXPLAINED WEALTH MANIFESTLY OUT OF PROPORTION 
158 
TO HIS SALARY AND OTHER LAWFUL INCOME. 
159 
160 
SECTION 6.SECTION 10 OF REPUBLIC ACT 1169, AS AMENDED, IS 
161 
HEREBY AMENDED TO READ AS FOLLOWS: 
162 
163 
Section 10. The Board of Directors of the OFFICE, with the approval of the 
164 
SECRETARY OF THE DEPARTMENT OF FINANCE, [President of the 
165 
Philippines,] shall promulgate rules and regulations for ITS [the holding of] CHARITY 
166 
lotteries AND OTHER SIMILAR ACTIVITIES, AND ITS INVESTMENT 
167 
ENDEAVORS. [shall fix the number and price of the tickets for the same and number 
168 
of tickets \Isually given gratis to the ticket vendors; fix the number and amount of 
169 
prizes; fix the date when the sale of tickets shall close; and designate the dates and place 
170 
or places Jhere such lotteries shall be held.] 
171 
172 
SECTION 7. REPEALING CLAUSE. ALL LAWS, DECREES, EXECUTIVE 
173 
ORDERS, RULES AND REGULATIONS, OR PARTS THEREOF AS ARE 
174 
INCONSISTENT WITH THIS ACT, ARE HEREBY REPEALED, AMENDED 
175 
OR MODIFIED ACCORDINGLY. 
176 
177 
SECION 8. SECTION 11 OF REPUBLIC ACT 1169, AS AMENDED, IS 
178 
HEREBY REPEALED. 
179 
180 
SECTION 9. DATE OF EFFECTIVITY. - THIS ACT SHALL TAKE EFFECT 
181 
FIFTEEN (15) DAYS AFTER ITS COMPLETE PUBLICATION IN THE 
182 
OFFICIAL GAZETTE OR IN AT LEAST TWO (2) NATIONAL NEWSPAPERS 
183 
OF GENERAL CIRCULATION. 
184 
185 
Approved, 
186