SIXTEEN'fH CONGRESS OF THE 
REPUB~IC OF THE PHILIPPINES 
FWST REQULAR SESSION 
SENATE 
SENATE BILL NO. _2_,_16_ 
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'13 
JUL -I fl 4 :52 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
As embodied in the 1987 Philippine Constitution under Article XIV, 
Section 1, which states, "The State shall protect and promote the right of all 
citizens to quality education at all levels and shall take appropriate steps to 
make such education accessible to all". 
The reason of the aforesaid constitutional provlslOn is believed that 
education serves as the foundation for sustained economic, political, social and 
cultural growth. For young people who have it staneHo. reap enormqus benefits 
and success, while those who do not are very likely destined to a life of 
hardship, trials, and want. 
J 
As more and more young people waste away in the slums, streets and 
sweatshops, the country suffers from an intellectual and moral drain. The lack 
of educational opportunity for young people is truly one of the worst tragedies 
that we witness. 
In a study conducted on Philippine education, it was concluded that of 
the one (100) pupils who entered basic education, only eight (8) to ten (10) will 
possibly get college education. This is indeed an upsetting situation. 
To quote the Constitution further, it states, "the State shall assign the 
highest budgetary priority to education and ensure that teaching will attract 
and retain its rightful share of the best available talents through adequate 
remuneration and other means of job satisfaction and fulfillment". 
However, since the Arroyo administration, there is a downward trend in 
terms of State subsidy to public tertiary education. This experience prompted 
the SCU heads to beg from the kind benevolence of lawmakers who have the 
heart for education and even using fund-raising schemes courtesy of their 
faculty, alumni and student bodies just to stay afloat - year after year. 
Albeit the increase of State subsidy to SUCs last year as programmed in 
the General Appropriations Act of 2013, the Government however has no clear 
and permanent mechanisms to ensure that SUCs would enjoy greater subsidy 
from the State. 
The passage of this bill is earnestly sought with the intention of helping 
support State Universities and Colleges (SUCs) and the funding assistance shall 


be sources from the earnings of the state-run Philippine Amusement and 
Gaming Corporation (PAGCOR). Accordingly, ten percent of the cqrporation's 
gross income shall be set aside for the support of the SUCs. 
I 
JOSEPH ~IC\~~RCITO 


, , 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
FIRST REGULAR SESSION 
'13 
Jut. -1 
P / :';2 
SENATE 
. , 
,. 
SENATE BILL NO. 
216 
kINTRODUCED BY SENATOR JOSEPH VICTOR G, EJERCITO 
AN ACT FURTHER AMENDING SECTION 12 OF PRESIDENTIAL DECREE 
1869 AS AMENDED AND AtrtrOCATING A POR.TJON OF THE FUNDS 
GENERATED BY THE PllltrIPPINE AMUSEMltNT AND GAM~NG 
CORPORATION TO STATE RUN UNIVERSITIES AND COLLEGES AS 
FINANCIAL EDUCATIONAL SUPPORT 
Be enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section Twelve (12) of Presidential Decree 1869 is hereby amended 
to read as follows: 
Section 12. SpeciaZ Condition of Franchise. - After 
deducting five (5%) percent as Franchise Tax, the fifty 
percent (50%) share of the government in the aggrega-
gross earnin~;,of the Corporation from this Franchise, 
or sixty percent (60%) if the aggregate gross earnings 
be less than P 150,000,000, shall immediately be set 
aside and shall accrue to the General Fund to finance the 
priority infrastructure development projects and to 
finance the restoration of damaged or destroyed facilities 
due to calamities, as may be directed or authorized by 
the Office of the President of the Philippines. 
Ten percent (10%) of the Corporation's gross 
income shall be set aside for the support of State run 
Universities and Colleges, which must be released di-
rectly in full from the Philippine Amusement and Ga-
ming Corporation (PAGCOR) to State Universities and 
Colleges (SUCs). Earnings of the Corporation from the 
previous year must be released at least one month 
before every opening of the school year, to be divided 
equally among all State run Universities and Colleges 
in the Philippines, 
SECTION 2. Repealing Clause. -
All laws, decrees, executive orders, 
administrative orders, rules or regulations inconsistent herewith are hereby 
repealed, amended or modified accordingly. 


, . 
SECTION 3. Effectivity Clause. -This Act shall take effect fifteen (15) days after 
its publication in a newspaper of general circulation. 
Approved,