FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
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) 
) 
SENATE 
S.No. 2892 
'11 
JUL 18 P 1 :51 
RECEl'J!::U ny: (2,.,-
-\._-
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Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
Republic Act (RA) No. 1169, or The Philippine Charity Sweepstakes 
Office charter, was enacted into law in 1954 with the mandate of providing 
and raising funds for health programs, medical assistance and services, and 
charities of national character. It was amended by Batas Pambansa BIg. 42 and 
Presidential Decree No. 1157 in 1979 and 1977, respectively. 
As a funding institution, however, peso has become not only a 
promoter of patronage politics but also a source of injustice and inequality 
especially in the use and distribution of its charity fund. More often than 
not,benefitting are only those within the graces of the powers that be. 
The peso charter as a social legislation must thus be revisited and 
made true to its purpose and mandate by amending Section 6 thereof. 
Section 6 provides the allocation of peso'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 peso 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. 
It is proposed that the said discretionmy 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 peso'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. 
Respectfully submitted. 
FRANCIS G. ESCUDERO 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENA,TE 
s,No.2892 
'11 
JUL 18 P 1 :51 
RI~CEI" i;ll By:_(2" 
,,. 
Introduced by Senator FRANCIS 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: 
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SECTION 1. Section 6 of Republic Act No. 1169, as amended, is hereby 
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further amended to read as follows: 
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"SECTION 6.Allocation of Net Receipts. - From the gross receipts 
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from the sale of sweepstakes tickets, whether for sweepstakes races, lotteries, or 
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similar activities, shall be deducted the printing cost of such tickets, which in 
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no case shall exceed two percent of such gross receipts to arrive at the net 
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receipts. The net receipts shall be allocated as follows: 
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A. Fifty-five percent (55 %) shall be set aside as a prize fund for 
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the payment of prizes, including those for the owners, jockeys of 
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running horses, and sellers of winning tickets. 
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Prizes not claimed by the public within one year from date of 
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draw shall be considered forfeited, and shall form part of the charity 
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fund for disposition as stated [be1ow.]UNDER THE SUCCEEDING 
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PARAGRAPHS. 
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B. Thirty percent (30%) shall be set aside as contributions to 
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the charity fund WHICH SHALL BE EARMARKED AS 
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FOLLOWS: (from which the Board of Directors, in consultation with 
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the Ministry of Human Settlement on identified priority programs, 


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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 to 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; 
2. 
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; 
5. 
20% 
PRESIDENT'S SOCIAL FUND. 
THE ABOVE ALLOCATION, TO ENSURE EQUITY 
AND FAIRNESS, SHALL BE SPENT AND DISTRIBUTED ON 
A PRIORITY BASIS IN ACCORDANCE 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 shall 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. 


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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 PambansaBlg. 42 dated 24 September 1979]." 
SEC. 2. 
All 
laws, 
presidential 
decrees, 
executive 
orders, 
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proclamations and/ or administrative regulations which are inconsistent with 
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the provisions of this Act are hereby amended, modified, superseded or 
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repealed accordingly. 
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SEC. 3. 
This Act shall take effect fifteen (15) days from its 
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publication in the Official Gazette or at least three (3) newspapers of national 
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circulation. 
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Approved,