Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
1 Regular Session

~ 69
House atl No, 4528 _

Introduced by: REP. ARNOLFO “ARNIE" A. TEVES, JR.

EXPLANATORY NOTE

On June 18,1954, Republic Act 1169 was enacted into law providing for charity
sweepstakes and lotteries once a month when there are no Sweepstakes draws
and races.

In September 1979, Batas Pambansa Big.42 was enacted into law amending the
PCSO Charter (RA 1169). The law raised the fund allocation for the agency's
Charity Fund from the previous 25% of net sales to 30%, while 55% now went to
prizes and the remaining 15% for operations. On top of the 30% share from net
receipts, all unclaimed prizes go to the Charity Fund.

Despite the notable up-trend in sweepstakes activity, the growing number of
requests for greater financial assistance from all over the country has been
outstripping the earnings from ticket sales.

As embodied in its charter, the PCSO's primary objective is to provide funds for
health programs, medical assistance and services and charities of national
character. The PCSO's mandate sets the pace for the development of
community health care in all the regional hospitals nationwide through the
establishment of Tuberculosis Centers, Cancer and Pain Centers, and Dialysis
Centers that deliver vital medical assistance and services to the people.

For instance in 2018, PCSO Vice President and General Manager Royina Garma
said that the PCSO paid PHP16.7 billion in taxes while PHP33.6 billion of its
revenues went to prizes. This amount could have been used directly to help our
less privileged brothers and sisters with their medical needs.


Only PHP9 billion was left fo fund the various PCSO charity programs. In view of
this, the bill seeks to amend the PCSO charter reverting to its original mandate
operating as a charitable institution and concentrate on the implementation of
medical health programs and all other activities and programs be removed.

in view of the foregoing immediate passage of the Bill is earnestly sought.

a

HON. ARNOLFO “ARNIE” A. TEVES, JR.


HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

1" Regular Session

~ Py
HOUSE BILL NO. 4528

Introduced by: REP. ARNOLFO “ARNIE" A. TEVES, JR.

AN ACT AMENDING SECTION ONE OF REPUBLIC ACT NUMBERED ELEVEN
HUNDRED AND SIXTY-NINE, OTHERWISE KNOWN AS THE CHARTER OF THE
PHILIPPINE CHARITY SWEEPSTAKES OFFICE

SECTION I. TITLE. This Act shall be known as the "PCSO ACT OF 2022.

SECTION 2.

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.

In wdance with Sec 28 (3) Art. if re
it provides that “Charitable institutions, churches and parsonages or


nver it thereto, mosques, I nd_all
ili i rectly, and_exclusi
used for religious, charitable, ational purposes shall be exempt

from taxation" PCSO shall_be exempt from Taxation as well as the

ment of ment imp Tax. :

SECTION 3. REPEALING CLAUSE
All laws decrees, executive orders, rules and regulations, or parts thereof which

mandates mandatory contribution from PCSO funds are hereby repealed.
SECTION 4, EFFECTIVITY
This Act shall take effect Fifteen (15) days after ils publication in the Official

Gazette or in a national newspaper of general circulation.

Approved.