Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRE:
FIRST REGULAR SESSION

a
House Bill No: 566.

EXPLANATORY NOTE

Presidential Decree No. 1869 which consolidated Presidential Decree No»

+ 1867-A, 1067-C, 1399 and 1632, relative to the franchise and powers of the
Philippine Amusement and Gaming Corporation (PAGCOR), was enacted on July 11,
1983 to enable the then Marcos Government to regulate and centralize thiu an
appropriate institution all games of chance authorized by existing franchise or
permitted by law.

In this same decree, PAGCOR was given greater fleaibility in its operation by
limiting goyernmental audit only to the determination of the five percent (5%)
tranchise tax and the government's share of fifty percent (50%).

When President Cory Aquino took over the reins of government in 1980,
PAGCOR was placed under full audit by the Commission on Audit through COA
Resolution 86-13, which declared Section 15 of PD 1869 relative to the franchise and
powers of PAGCOR, to be without force and effect insofar as the audit thereot is
concerned.

This measure is not questioning whether COA is performing its audit funetion
of PAGCOR but rather there is need to amend the law to conform with the
Constitution. The COA circular cannot amend the existing law, which is PD 1869. It
the proper amendment to the law is not done the Supreme Court may declare the law
unconstitutional,

This bill is a refiled bill of House Bill No 3536 entitled “An Act
Amending Presidential Decree No. 1869, As Amended, Consolidating And
Amending Presidential Decree Nos. 1067-A, 1067-B, 1067-C, 1399 And 1632,
Relative To The Franchise And Powers Of The Philippine Amusement And
Gaming Corporation (PAGCOR), Subjecting PAGCOR To The Audit Jurisdiction
Of The Commission On Audit”, authored by the undersigned and Representative
Hermilando 1. Mandanas during the 15"" Congress

I is therefore urgently requested that this” bill be approved by this
Chamber

AMADO S. BAGATSING
Representative
5" District, Manila



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS

FIRST REGULAR SESSION

ue 566

House Bill No.

Introduced by Honorable Amado S. Bagatsing

AN ACT

AM PRESIDENTIAL DECRE!
CONSOLIDA ND AMENDING PRESIDEN'
1067-8, 1067-C, 1399 AND 1632, RE!
OF THE PHILIPPI,
SUBJECTING PAG!

NO, 1869, AS AMENDED,

AL DECREE NOS. 1007-A,

TIVE TO THE FRANCHISE AND POWERS

AMUSEMENT AND GAMING CORPORATION (PAGCOR),

‘OR TO THE AUDIT JURISDICTION OF THE COMMISSION
ON AUDIT

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

SE

: “TION 1, Section 15 of Presidential Decree No. 1869 is hereby amended to read
as follows:

“Section 15. Auditor ~The Commission on Audit [ or any government ageney
that the office of the President may designate | shall appoint a representative who shall be the

Auditor of the Corporation and such personnel as may be necessary 10 assist suid

representative

n the perf

ice Of his duties. The salaries of the Auditor or representative
and hiy staff shall be fixed by the Chairman of the Commission on Audit. | or designated

government agel

ey, with the advice of the Board, and said salaries and other expenses shall
be paid by the Corporation, ‘The funds of the Corporation to be covered by the audit shall be

limited to the 5% franchise tax and the 50% of the gross earnings pertaining to the

government as its share. | FUNDS AND TRANSACTIONS, INCLUDIN
INCOME AND EXPENDITURES, OF THE CORPORATION, SHALL BE AUDITED
PURSUANT TO EXISTING LAWS AND REGULATIONS.”

SEC. 2. All laws, decrees, executive orders, i

REVENUES,

structions, rules and regulations or
paris thereof’ inconsistent with the provisions of this Act are hereby repealed or modilied

accord



SEC. 3. This Act shall take effect thiny (30) days after its approval and atic its
publication in the Official Gazette or in two (2) national newspapers of general circulation
Approved,