SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No. 
:598 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
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'13 
JUL -8 P 1 :1 8 
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 Blg. 42 and Presidential Decree No. 1157 in 1979 and 
1977, respectively. 
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As a funding institution, however, PCSO has become not only a promoter of 
. patronage politics but also a source of injustice and inequality especially in thb use and 
distribution of its charity fund. More often than not,benefitting are only those within the 
graces of the powers that be. 
The PCSO charter as a socialleglslation must thus be revisited and made true to 
its purpose and mandate by amending Section 6 thereof. 
Section 6 provides the allocation of PCSO'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 
PCSO 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 discretionary 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 PCSO'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 


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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Sessi(Jn 
) 
) 
) 
SENATE 
S.B.No. 598 
'13 
JUL -8 PI :18 
'0,' ~i) HV:-f 
------------------------------------------------
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: 
SECTION 1. Section 6 of Republic Act No. 1169, as amended, is hereby further 
amended to read as follows: 
"SECTION 6.Allocation of Net Receipts. - From the gross receipts from 
the sale of sweepstakes tickets, whether for sweepstakes races, lotteries, or similar 
activities, shall be deducted the printing cost of such tickets, which in no case 
shall exceed two percent of such gross receipts to arrive at the net receipts. The 
net receipts shall be allocated as follows: 
A. Fifty-jive 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 datf of draw 
shall be considered foifeited, and shall form part of the charit)! fund for 
disposition 
as 
stated 
[below.]UNDER 
THE 
SUCCpEDING 
PARAGRAPHS. 
B. Thirty percent ,(30%) shall be set aside as contributions to the 
charity fund WHICH SHALL BE EARMARKED AS FOLLOWS: [from 
which the Board of Directors, in consultation with the Ministry of Human 
Settlement on identified priority programs, 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 (0 such rules and regulations 
as the Boar'd may from time establish and promulgate}. 
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20% 
AMBULANCE, INCLUSIVE OF REPAIR AND 
MAINTENANCE, AND OTHER METHODS OF 
CONDUCTION/CONVEYANCE OF PATIENTS; 
2. 
20% 
PHILIPPINE HEALTH INSURANCE 
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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 1ND 
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, STARTINf WITH 
THE'POOREST IN THE COUNTRY. 
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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 nq case shall such application to investments 'exceed ten percent (J 0%) 
of the nel niceipls 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 Miliister), 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. 
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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. 
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, proclamations 
andlor administrative regulations which are, inconsistent with the provisions of this Act 
are hereby amended, modified, superseded or repealed accordingly. 
,SEC. 3. 
This Act shall take effect fifteen (15) days from its publication in 
the Official Gazette or at least three (3) newspapers of national circulation. 
Approved, 
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