AUG 2013
Republic of the Philippines GHale
HOUSE OF REPRESENTATIVES Vom PY
Quezon City
16” CONGRESS

First Regular Session

HOUSE BILLNO.__ 2208

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

This bill seeks to amend Section 6 of Republic Act No. 1169, as amended.

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.

‘This bill proposes 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.

In view of the foregoing, passage of this bill is earnestly requested.

eee

EVELINA G. ESCUDERO


Mouse ne

Soo

11
12
13
14

15
16
17
18
19
20
21
22
pes
24
25

26
27

28
29:

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
16" CONGRESS,

First Regular Session

HOUSE BILL NO. 2208

Introduced by REP. EVELINA G.

;CUDERO.

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:

y-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 lickets

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.JUNDER THE SUCCEEDING
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 to such rules and regulations
as the Board may from time establish and promulgate].

dL 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;



ne

Bw

a

and/or administrative regulations which are inco1

x 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 I (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.

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 10 disposition as above stated.

The disbursements of the allocation herein authorized shall be
subject (0 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

tent 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,