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VENTEENTH CONGRESS OF THE ) SF RECE zy
REPUBLIC OF THE PHILIPPINES ) 2 ns EIVED cy
First Regular Session )
HOUSE OF REPR NTATIVES

u.B.No4647

Introduced by: Cong. Eugene Michael B. de Vera
ABS Partylist

EXPLANATORY NOTE

Republic Act 1169 (RA 1169) was enacted into law on June 18, 1954, which
provides that the Philippine Charity Sweeptakes Office (PCSO) shall be the principal
government agency for raising and providing funds for health programs, medical assistance
and services, and charities of national character, Then, in September 1979, Batas Pambansa

Blg.42 (BP 42) was enacted into law amending the charter of PCSO

Under its amended charter, the PCSO has the authority to hold and conduct lotteries
and similar activities to generate funds. It introduced different kinds of lottery like, Instant

Sweepstakes, Small Town Lottery or STL, On-Line Lottery, Doble Panalo and more,

PCSO is the recognized instrument of the Government in helping the underprivileged.
lis vanguard created different program such as Individual Medical Assistance Program,
Institutional Partnership Program, Calamity Assistance Program, AFP/PNP Health Facilities’
Capability Building Project, Auxiliary Ambulance Service, among others.

In order to maintain the above-mentioned projects, this bill seeks to expand the

PC!

investments, programs, projects, and activities involving lotteries and gaming, either by itself

)'s power in regulating licenses and permits to operate. It also aims to engage in

or in collaboration, association or joint venture with any person, company, or entity, whether
domestic or foreign, for the purpose of providing for continuing sources of funds for health
programs. It further seeks that the board be given the power to review and revise the

breakdown of sharing allocation of the gross receipts.


This bill amends the mandate of the PCSO’s charter in order to adjust in the situation
of the present time. Moreover, it guarantees that thru engaging in investments, programs and
others, it can multiply the sources of funds for the lasting implementation of its charity

programs.

The approval of this bill is earnestly sought for.

Be oh (bo

MICHAEL B. DE VERA



\TH CONGRESS OF THE )
LIC OF THE PHILIPPIN:
First Regular Session )

HOUSE OF REPRESENTATIVE
up. No, 4647

Introduced by: Cong, Eugene Michael B, de Vera
AE

PAMBANSA BL
KNOWN AS “AN ACT PROVIDIN

TION 1. Section 1 of Republic Act 1169 is hereby amended to read as follows:

“SECTION 1, The Philippine Charity Sweepstakes Office. — ‘The Philippine Charity
Sweepstakes Office, hereinafter designated the Office, shall be the principal government
agency for raising and providing for funds for health programs, medical assistance and
services, and charities of national character, and as such shall have the general powers
conferred in section thirteen of Act Numbered One thousand four hundred fifty-nine, as
amended, and shall have the authority

A. To hold and conduct charity sweepstakes races, lotteries, and other similar activities,
in such frequency and manner, as shall be determined, and subject to such rules and
regulations as shall be promulgated by the Board of Directors

B. TO ISSUE LICENSES AND PERMITS TO OPERATE TO PRIVATE

ORGANIZATIONS, ESTABLISHMENTS AND CORPORATIONS IN

CONDUCTING LOTTERIES, AS WE AS LICENSES TO MANUFACTURER

SELLERS AND DISTRIBUTORS OF GAMING PARAPHERNALIA SUB.

THE RULES AND REGULATIONS DETERMINED BY THE PC:

E ISTMENTS, PROGRAMS, PROJECTS, AND ACTIVITIES
INVOLVING LOTTERIES AND GAMING, EITHER BY ITSELF OR IN
COLLABORATION, ASSOCIATION OR JOINT VENTURE WITH ANY
PERSON, COMPANY, OR ENTITY, WHETHER DOMESTIC OR FOREIGN, FOR
a PURPOSE OF PROVIDING FOR CONTINUING SOURCES OF FUNDS FOR,
HEALTH PROGRAMS, INCLUDING THE EXPANSION OF EXISTING
PROGRAMS, MEDICAL ASSISTANCE AND SERVICES, AND/OR
CHARITABLE GRANTS, SUBJECT TO THE APPROVAL OF THE PRESIDENT;



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D, To undertake any other activity that will enhance its funds generation operations and
funds management capabilities, subject to the same limitations provided for in the
preceding paragraph

It shall have a Board of Directors, hereinafter designated the Board, composed of five
members who shall be appointed, and whose compensation and term of office shall be fixed,
by the President”

ION 2.Section 6 of RA 1169 is hereby amended to read as follows:

“SECTION 6, Allocation of Gross Receipts THI
ALLOCAT AS FOLLOWS, PROVIDED HOWE
HAVE THE POWER TO REVIEW AND REVISI
ALLOCATION OF THE GROSS RECEIPTS.

GROSS RECEIPTS SHALL BE
R, THAT THE BOARD SHALL.
THE BREAKDOWN OF SHARING

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.

B, Thirty percent (30%) shall be set aside as contributions to the charity fund from which the
Board of Directors, in consultation with the OFFICE OF THE PRESIDENT [Ministry of
Human Settlement] on identified priority programs, needs, and requirements in specific
communities and with approval of the Office of the President, 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, 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, Fifleen (15%) percent shall be set aside as contributions to the operating expenses and
capital expenditures of the Office.

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

SECTION. 3.Section 9 of RA 1169 is hereby amended to read as follows:


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“SECTION 9, Powers and Functions of the Board of Directors, — The Board of Directors of
the Office shall have the following powers and functions:

A, To adopt or amend such rules and regulations to implement the provisions of this Act
B. TO ISSUE LICENSES AND PERMITS TO OPERATE TO. PRIVAT
ORGANIZATIONS, ESTABISHMENTS AND CORPORATIONS CONDUCTING

LO’ AS WELL AS LICENSES TO MANUFACTURERS, LE AND
DISTRIBUTORS OF GAMING PARAPHERNALIA SUBJECT TO RULES AND
REGULATIONS DETERMINED BY THE COMMISSION;

Cc. TO DE REVIEW AND REVISE THE ALLOCATION OF GROSS
RECEI 6 OF THIS ACT;

D. [B.] Consistent with the purposes of this Act, to determine and approve the most
effect framework for the Office and its staffing pattern; to fix the
salaries and determine the reasonable allowances, bonuses, and other incentives of its
officers and employees as may be recommended by the General Manager; and to
prescribe the manner of hiring and compensating on a contractual basis such sales and
other personnel as may be required for its operations, subject to pertinent civil service
and compensation laws,

E, [CJ To contract loans, credits, and indebtedness, whether domestic ot foreign, on
such terms and conditions as it may deem appropriate for the accomplishment of its
purposes, subject to applicable laws, rules, and regulations

F. [D.] To promulgate rules and regulations for the operation of the Office and to do
such act or acts as may be necessary for the attainment of its purposes and
ob 5”

SECTION 4.Separability Clause. — If any part or provision of thus Act shall be declared
unconstitutional or invalid, the other parts or provisions hereof which are not affected shall
continue in full force and effect

SECTION 5,Repealing Clause. ~ Republic Act No. 1169, as amended by Batas Pambansa
Bilang 42 and Presidential Decree No. 1157, is hereby repealed. All laws, decrees, executive
orders, rules and regulations or parts thereof inconsistent with the provisions of this Act are
hereby repealed ort modified accordingly

SECTION 6.Effectivity. - This Act shall take e!
the Official Gazette.

4 thirty (30) days after its publication in

Approved,