Republic o6f the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No._7977

Introduced by Representatives John Marvin “Yul Servo” Nieto, Edward Vera Perez Maceda, Eric
M. Martinez, Federico II "Ricky" S. Sandoval, and Dale "Along" R. Malapitan

EXPLANATORY NOTE

‘As a manifestation of support to this timely piece of legislation, this representation respectfully refiles
this bill, which has constantly been receiving support from the past and present (Rep. Eric Olivarez’s
HB 4324) congress,

For about two decades since the Philippine Charity Sweepstakes Office introduced the Lotto, scores
of Filipinos have won jackpots and whose lives improved. But still, scores more should have likewise
‘won had it not for the standard paper used in printing lottery tickets.

Up to the present time, Lotto tickets are printed on thermal paper, the resultant printout of which fades
in a very short period of time notwithstanding the greater degree of safekeeping. It defeats the one-
year period of claiming within which winning tickets can be validated leading to a successful claim,
whether for the jackpot or other cash prizes. There had been countless accounts of unsuccessfitl
claimants whose supposed winning tickets failed the validation test due to the sole fact that the
printouts became too pale to yield validation. By using non-thermal paper, recyclable paper or paper
of robust quality, Lotto tickets bearing winnings would only require the degree of ordinary diligence
and thus dispense the anxiety of frustration among claimants. Moreover, the possibility of reducing
expenses in producing thermal paper would be most likely at hand.

In view of the foregoing, the favorable consideration and approval of this proposed measure is
respectfully and estly sought

JOHN SERVO” NIETO



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session
7977

House Bill No.

Introduced by Representatives John Marvin “Yul Servo” Nieto, Edward Vera Perez Maceda, Eric
M. Martinez, Federico II "Ricky" S. Sandoval, and Dale "Along" R. Malapitan

AN ACT
REQUIRING THE PHILIPPINE CHARITY SWEEPSTAKES OFFICE (PCSO) TO PRINT
THE LOTTO TICKETS ON A NON-THERMAL PAPER OR ANY KIND OF RECYCLABLE
PAPER WHICH ENSURES THAT THE PRINTINGS THEREON CANNOT BE EASILY
ERASED OR OBSCURED BY SIMPLE SCRATCHES AND CRUMPLES, AND CAN
WITHSTAND REASONABLE HEAT, THEREBY REDUCING THE POSSIBILITY OF
TICKET SPOILAGE

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. This Act shall be known as the PCSO Lottery Paper Act of 2016.

Section 2. Coverage. This Act shall cover all kinds of lottery or similar games being
‘operated/implemented now and in the future by PCSO in the Philippines nationwide, provided that the
said lottery or game involves tickets which the public have to purchase, and present upon winning.

Section 3. Definition of Terms.

Lottery - a means of raising money by selling numbered tickets and giving prizes to the
holders of numbers drawn at random.

Thermal paper - a special fine paper that is coated with a chemical that changes color when
exposed to heat. It is used in thermal printers and particularly in inexpensive or lightweight
devices such as adding machines, cash registers, credit card terminals, and lottery tickets.

Recyclable Paper - for purposes of this Act, the term recyclable paper is a paper that is
reconstituted into paper again. The best paper to be using is 100% post-consumer recycled
paper that is made from paper scrap that can, no longer be used for its intended purpose by the
consumer, which is reprocessed into paper again. This paper is collected from offices,
households and industry by local councils and scrap paper merchants.

Durable and heat-resistant paper - for purposes of this Act, the term heat-resistant paper
pertains only to kinds of paper which do not get the printing thereon easily erasable despite
being scratched, crumpled, dampened, or exposed to a reasonable amount of heat. This
however does not mean that the paper itself must be totally indestructible or fire-durable.

Section 4. Lottery Tickets Printed on Non-thermal Paper, Any Recyclable Paper or Any
Durable and Heat-resistant Paper. The PCSO shall print the tickets used in any lottery or similar
‘games operated by the said office/agency in the country, on a non-thermal paper, any recyclable paper


or any kind of durable and heat-resistant paper which ensures that the printings thereon cannot be
easily erased or obscured by simple scratches and crumples, and can withstand reasonable heat

Section 5. Period of Compliance. The PCSO shall comply with the requirements and provisions of
this Act within three (3) months from the effectivity of this Act.

Section 6. Raw Material Procurement. The procurement process of raw materials (ie. new non
thermal papers, any recycle paper and/or durable, heat resistant papers) needed for compliance with
this Act shall be in accordance with the existing rules and procedures for the old papers being used by
PCSO before the effectivity of this Act.

Section 7. Implementing Rules and Regulations. The Philippine Charity Sweepstakes Office
(PCSO) with the approval of the Office of the President shall promulgate the Implementing Rules and
Regulations to carry out the provisions of this Act. Such rules and regulations shall take effect upon
their publication in three (3) newspapers of general circulation.

Section 8. Repealing Clause. All laws, presidential decrees, letters of instructions, executive orders,
tules and regulations insofar as they are inconsistent with this Act, are hereby repealed or amended as
the case may be.

Section 9. Separability Clause. In the event that any provision of this Act or any portion thereof is
declared unconstitutional by a competent court, the other provisions shall not be affected thereby and
shall remain valid and enforceable

Section 10. Effectivity Clause. This Act shall take effect after its complete publication in at least
three (3) newspapers of general circulation.

Approved,