Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

—---- -—Fourteenth Congress... -
First Regular Session

House Bill No, 4440

INTRODUCED BY REPRESENTATIVES RENATO J. UNICO, JR., ENRIQUE M.
COJUANGCO, ROBERTO V. PUNO, LUCY T. GOMEZ, EDWIN DL. OLIVAREZ, LEOPOLDO
N. BATAOIL, MARK AERON H. SAMBAR, RANDOLPH S. TING, ARNEL U. TY,
EMMELINE Y. AGLIPAY, CESAR G. JALAOSJOS, SETH FREDERICK P. JALOSJOS,
EDUARDO R. GULLAS, MONIQUE YASMIN Q. LAGDAMEO, RAYMOND V. PALATINO,
AMADO S. BAGATSING, ROGER G, MERCADO, AND CARMELO F. LAZATIN

EXPLANATORY NOTE

Like every legislative measure enacted by Congress, this measure which seeks to revise
the charter of the Philippine Sports Commission (PSC), has for its object, the need to respond to

current challenges affecting sports in the Philippines.

Under existing laws, there are no clear delineating boundaries, and no complimentary
linkages either, as regards the sports programs undertaken by local government units,
academic institutions and even with those of the numerous sports associations themselves.
There is, therefore a palpable lack of coherence of both vision and strategy in sports resulting in
the country’s inability to maximize the citizenry’s potential for sports excellence both domestic
and international. Without the remarkable performance of a number of individual athletes who
have excelled in their field, the country’s success in international competitions has been quite
conservative in recent years. Aggravated by the fact that our financial resources are quite
limited, there must be unanimity and cohesion in vision and strategy to compliment our lack of
material resources by strengthening our existing institutions like the PSC, in achieving its goals.

Apart from clearly defining its sources of funds, this measure endeavors to delineate the
sports programs of local goverment units, academic institutions and strengthened
accountability of the various national sports associations to enable them to contribute
significantly to the PSC’s effort to select the best among aspiring athletes and considerably
increase our chances in international sports competitions and events. The measure likewise
seeks to clarify-once and for all the use and control of sports facilities maintained by local

government units.
On the administrative aspect of the measure, it also defines the co-terminus nature of

the appointments of the heads of the Commission to enable the President to appoint trusted
and qualified executives who share his vision in sports. By way of strengthening existing sports


~weutions, pational sports associations are now required to register their organizations in order
0 foster greater accountability in the utilization of government's resources.

ultmately assisting them in intemationat events and competitions. With the current
amendments contained in this proposed measure, it Is envisioned that the declared policy may
reasonably be achieved, that is, aot only for the development of a healthy and alert citizenry

But also to give pride, honor and glory of the country through a unified national sports
Promotion and development program.

HON. RENATO 3. UNICO, JR.
HON. ENRIQUE M. COJUANGCO
HON. ROBERTO V. PUNO.

HON. LUCY T. GOMEZ

HON. EDWIN DL. OLIVAREZ
HON. LEOPOLDO N. BATAOIL
HON. MARK AERON H. SAMBAR
HON. RANDOLPH S. TING

HON. ARNEL U. TY

HON. EMMELINE Y. AGLIPAY
HON. CESAR G. JALAOSJOS
HON. SETH FREDERICK P. JALOSIJOS
HON.EDUARDO R. GULLAS

HON. MONIQUE YASMIN Q. LAGDAMEO
HON. RAYMOND V. PALATINO

HON. AMADO S. BAGATSING

HON. ROGER G. MERCADO

HON. CARMELO F. LAZATIN


SIGNATURE SHEET FOR HB No, 4440

“AN ACT PROMOTING THE DEV ELOPMENS OF SPORTS IN THE COUNTRY,
REVISING FOR THE PURPOSE REPUBL| IC ACT NO. 6847, OTHERWISE KNOWN
AS THE “PHILIPPINE SPORTS. COMMISSION ACT” AMD FOR OTHER

PURPOSES”

HON. PEDRO B. ACHARON, JR.
HON. MERCEDES K. ALVAREZ

HON. BIOSDADO M. ARROYO
HON. JUAN EDGARDO M. ANGARA bowed
HON. JOSEPH VICTOR G. EJERCITO
HON. ERICO BASILIO A. FABIAN

HON. WILFRIDO MARK M, ENVERGA

HON. ALFREDO ABELARDO B. BENITEZ

HON. MONIQUE YASMIN Q. LaGDAMEO
HON. MARK LLANDRO L. MENDOZA
HON. RUFUS B. RODRIGUEZ

HON. SIGFRIDO R. TINGA

HON. LUIS R. VILLAFUERTE

i 7
HON. MARK A. VILLAR aan : <—— an


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill nol 440

Introduced by: Hon. Renato J. Unico, Jr.

AN ACT
PROMOTING TIE DEVELOPMENT OF SPORTS IN THE COUNTRY,
REVISING FOR THE PURPOSE REPUBLIC ACT NO. 6847, OTHERWISE
KNOWN AS THE “PHILIPPINE SPORTS COMMISSION ACT’ AND FOR
OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled

Section 1. Title of the Act. - This Act shall be known as "The Revised
Philippine Sports Commission Act of 2011"

Section 2. Declaration of Policy. — It is the policy of the State to
promote physical education, encourage and sustain the development of
sports in the country to foster physical fitness, sclf-discipline, teamwork
and excellence not only for the development of a healthy and alert
citizenry but also for the pride, honor and glory of the country through a
unified national sports promotion and development program. The
establishment and creation of a single, unified and integrated national
sports policy-making body shail further this objective.

Section 3. Strengthening the Philippine Sports Commission. - The
Philippine Sports Commission, a body corporate, hereinafter referred to
as the Commission, established under Republic Act No. 6847 is hereby
reorganized and strengthened to more vigorously promote the
development of sports in the country.

Section 4. Status of the Commission. — The Commission shall remain
a national governmental regulatory agency attached to the Office of the
President.

Section 5. Nature of the Commission. — The Commission shall
exercise corporate powers. It shall have a seal, may sue and be sued, and
shall be ihe sole policy-making and coordinating body of all sports
development programs and institutions in the Philippines: Provided, That
school sports development program, physical education and school-based


sports activities shall be formulated and implemented by the Department
of Education (DEPED) and the Commission on Higher Education (CHED)
in their respective jurisdictions with the assistance of the Commission, in
-cordination—with—the- Philippine Olympie-Comunittee 4POC},—within the
framework of the national sports development program: Provided, further,
That community-based sports and related activities shall be primarily
managed by the local government units (LGUs).

Section 6. Objectives of the Commission. — The objectives of the
Commission are:

(a) To provide the leadership, formulate the policies and set the
priorities and direction of all national sports promotion and development,
particularly giving emphasis on grassroots participation;

(b} To encourage wide participation of all seclors, government and
private, in sports promotion and development; and

{c} To supplement government appropriations for sports promotion
and development.

Section 7. Functions of the Commission, — ‘The Commission shall
have the following functions:

(a) Plan, implement and oversee an integrated national sports
promotion and development program for the country, in coordination
with various sectors involved in sports, especially the POC , the national
sports associations, the public and private schools, LGUs, and other
sports organizations and private corporations that shall help in the
attainment of sports excellence;

(b) Establish and maintain linkages with international sports
associations, national sports commissions or organizations of other
countries, and international nongovernmental organizations whose main
objective is sports promotion and development;

{c} Prioritize specific sports and activities where resources for
incentives, support and trainings may be strategically channeled and
sustained;

(a) Plan and oversce a program to enable the Philippines to bid for
and to host the Olympic Games, Asian Games, Southeast Asian Games
and other international sports competitions in close coordination with the
POC;

(e) Establish, develop and maintain fully-equipped sports facilities
and centers in strategic places in the country and, as far as practicable,
such modern sports complexes adequate for major international

competitions;


() Rationalize and regulate the establishment of publicly-funded
sports complexes and supervise the management and maintenance
thereof, excluding school or college-owned sports complexes;

(g) Plan and formulate programs and review or evaluate, from time
to time, the organizational set-up, projects and programs of the
Commission;

(h) Develop and promulgate rules and regulations to implement this
Act, including rules to delineate and define arcas of responsibilities of all
sectors involved in sports promotion and development, respecting the
individual set-up, prioritics, structure and competence of the different
government and private institutions;

{iJ Assist the proper government agency in the formulation of an
industry incentives program for the manufacture in the Philippines of
sports equipment and supplies of international standard in quality;

(j) Provide such incentives, recognition and awards to deserving
nationa) sports associations, athletes, referces, game officials, coaches,
trainers and other persons aor entitics involved in or supporting national
sports development;

(k) Recommend and propose to the DEPED, CHED, Department of
the Interior and Local Government (DILG), LGUs and other government
agencies and instrumcntalities having sports programs, to incorporate in
their respective annual budgets, a separate and specific budget for sports
promotion and development;

{l) Conduct basic and applied research on sports development;

(m) Conduct promotion and fund-raising campaigns in accordance
with existing laws to achieve the purposes of the Commission and in
coordination with the POC on the fund-raising activities the POC may
conduct for the training of athletes and their participation in international
sports competitions;

(n} Encourage, promote and sustain the creation and establishment
of regional, provincial, municipal, city and barangay sports promotion and
development councils which shall initiate, conduct and coordinate sports
activities in their respective jurisdictions in accordance with existing laws;

(o) Assist LGUs in promoting sports at the community level,
especially those included in the calendar of events of national and
international competitions, in coordination with the POC;

(p) Institute, in coordination with the POC, a more comprehensive,
regular performance evaluation of national athletcs aimed at facilitating
the adequate preparation and the prompt and careful selection of athletes


who shall participate in international competitions, as well as in
developing and training young potential athlctes to be included in the
national training pool; and

(q) Exercise such other acts as are incidental to or are appropriate
and necessary in connection with the creation of the Commission.

Section 8. Composition of the Commission and Term of Office. — The
Commission shall be composed of a Chairperson and four (4)
Commissioners, all of whom shall be appointed by the President:
Provided, That two (2} of the Commissioners shal! be chosen from a list of
recommendees submitted by the POC. The Chairperson, whose rank shall
be equivalent to a department secretary shall concurrently act as the
Presidential Adviser on Sports, and the four (4) Commissioners shall have
the rank of undersecretaries.

The term of the Chairperson and the four (4) Commissioners shall be
ca-terminus with the appointing President: Provided, however, That they
shall remain in office until their replacements shall have been appointed.

in case of death, resignation, separation or removal from service, or
any permanent disability which renders the Chairperson or any of the
Commissioners ineffective to discharge his or her functions, the vacancy
shall be immediately filled up: Provided, That the new appointee shall
serve only the unexpired portion of the term.

Section 9. Qualifications of the Chairperson and the Commissioners.
The Chairperson and the Commissioners of the Commission must be
naturai-born citizens of the Philippines, publicly-rccognized personalities
in the field of sports, at least thirty (30) years of age and of good moral
character.

Section 10. Salaries of the Chairperson and Commissioners. - The
Chairperson shall be entitled to an annual compensation and other
benefits and privileges received by a department secretary. The
commissioners shall also be entitled to an annual compensation and
other benefits and privileges received by undersecretarics.

Section 11. Powers of the Commission. — The Commission has the
power to do all acts and things necessary to be done for or in connection
with the performance of its functions, including:

{aj To appoint the officers and other personnel of the Commission
and fix their compensation subject to existing laws, rules and
regulations;

(b) To delegate authority for the performance of any function to
officers and employees under its direction;


(c] To enter into contracts;

(@) To acquire, use and control any land, building, facilities,

equipment, instruments, tools and rights required or” otherwise
necessary for the accomplishment of the purposes of the
Commission;

{c) To acquire, own, possess and dispose of any real or personal
property;

() To procure sportswear, equipment, instruments, tools and other
sports necessities required by the national pool of athletes;

(g) To assist and support national sports associations in the
implementation of Section 13 of this Act;

{h) To confer, extend and grant awards, benefits and privileges to
national athletes, including the differently-abled national athletes,
coaches and officials for outstanding performances in national and
international competitions;

{i) To confer, extend and grant financial support or other forms of
assistance to national sports associations which are in good standing
with the Commission and the POC;

(i) To exercise supervisory and visitorial powers over the national
sports associations in connection with their sports prornotion and
development programs with respect to which financial assistance is
extendcd by the Commission;

(x) To accept donations, gifts, bequests, and grants for the purposes
of the Commission;

(i) To ensure the impicmentation by various government departments
and agencies of their sports promotion and development programs as
indicated in their respective annual budgets;

(m) To impose sanctions upon any national sports association,
institution, associalion, body, entity, team, coach, trainer, athlete
and sports official for violation of its policies, rules and regulations:
Provided, That any such sanction shall not run contrary to the
Olympic principle of non-intervention by government in sports;

(n) to accredit and classify all sporting venucs and facilities with
regard to quality and standards; and

(0) To perform any and all other acts incidental to or required by
virtue of its creation.


Section 12. The Philippine Olympic Committee. — The Philippine
Olympic Committee (POC) which is affiliated with the International
Olympic Committee is hereby recognized as the National Olympic

———committee for the Philippines-Itis autonomous in character. oe

The POC shall maintain its primary responsibility for activitics
pertaining to the country’s participation in the Olympic Games, Asian
Games, Southeast Asian Games and other international sports
competitions in accordance respectively with the rules and regulations of
the International Olympic Committee, the Olympic Council of Asia, the
Southeast Asian Games Federation and other international sports bodies.

Section 13. National Sports Associations. — The national sports
associations, organized for their respective sports in the Philippines and
recognized as such by the POC and affiliated with their respective
international federations which are recognized by the International
Olympic Committee shall be recognized as such by the Commission.

The national sports association recognized by the Commission shall
be autonomous and shall have exclusive technical control over the
promotion and development of the particular sport for which they are
Organized, subject however to the supervisory and visitorial powers of the
Commission, as provided in Section 11, paragraph (j) hereof.

Each national sports association shall, by its Constitution and By-
Jaws, determine its organization and membership: Provided, however,
That no team, school, club, organization or entity shali be admitted as a
voting member of a national sports association unicss sixty percent (60%)
of the athletes composing said team school, club, organization or entity
are Filipino citizens.

‘The Commission recognizes the following functions, powers, duties
and responsibilities of the various national sports associations:

(a) To adopt a Constitution and By-Laws not inconsistent with the
Constitution and By-Laws of the Philippine Olympic Committee and
to register with the Securities and Exchange Commission (SEC) in
accordance with Philippine laws;

(b) To raise funds by donations, benefits and other means for their
purposes;

{c} To purchase, sell, lease or otherwise encumber property, real or
personal, for the accomplishment of their respective purposes;

(a) To affitiate with international or regional sports associations;

{e} To conduct competitions fer the promotion of their respective
sports;


{]) To appoint their representatives to the Philippine Olympic
Committee in accordance with the POC constitution and by-laws ,
rules and regulations;

(g) To decide all questions on the membership status and discipline
of the athletes and officials connected with their respective national
sports associations as well as the members thereof and all disputes
between members in accordance with the POC constitution and by-
laws, rules and regulations;

(h) To adopt, in coordination with the POC, a training program for
the development of the athletes and their preparation for
international competitions;

(i) To sclect the athletes, coaches, and other officials for their
national teams taking into consideration not only their athletic
abilities but also their discipline, moral character, aptitude and
attitude , in coordination with the POC;

{i] To keep accurate records of all official marks, scores and results
attained by the athletes in the associations in all competitions, as
well as all results of sports competitions, recognize and confirm the
same and furnish copies thereof to the POC and the Commission;

{k) To qualify, train and certify coaches, referees, umpires, judges
and other technical officials who shall participate or officiate in
competitions in their respective sports; and

() To perform such other acts as may be necessary for the proper
accomplishment of their purposes.

Section 14, Executive Director and Deputy Executive Directors. —
The Chairperson shall appoint an Executive Director, preferably from
among the four (4) Commissioners. The Executive Director shall direct
and supervise ihe day-to-day operations of the Commission and _ shall
have supervision and control over the bureaus as may hereafter be
created by the Commission. The Chairperson shall also appoint the
Deputy Executive Directors who shall head the bureaus. The Executive
Director, if not a Commissioner appointed by the President, and the
Deputy Executive Directors shall serve at the pleasure of the Chairperson.

Section 15. Qualifications of Executive Director and Deputies. - No
person shall be appointed an Executive Director or Deputy Executive
Director of the Commission unless he or she is a Filipino citizen, at least
thirty (30) years of age, of good moral character, a college graduate and
has at least five (5) years experience in sports administration.

Section 16. Functions and Responsibilities of Officers and Staff . -
The Finance and Administrative Services Bureau shall be primarily


responsible for providing services related to financial management,
personnel, records, supplies and equipment. The Coordinating Secretariat
and Support Services Burcau shall be primarily responsible for plans and

~ programs formulation, research, BDP-and_system-management, public

information and production, transportation, communications and such
other functions and responsibilities as may be necessary and required by
the Commission. Each bureau shall be headed by a Deputy Executive
Director.

Section 17. Appointment of Staff and Employees of the Commission. —
The staff, officers and employees of the Commission shall be appointed by
the Chairperson of the Commission.

Section 18. Tax Exemption on the Use of Sports Facilities. — To
encourage popular participation in sports, no tax of any kind shall be
levied on the use of sports facilities accredited by the PSC, whether the
tax be on the user, owner or operator of the sports facility.

Section 19, Tax Exemption of the Commission. - The Commission
shall be exempted from the payment of customs duties, taxes and tariffs
on the importation of sportswear, equipment, supplies, instruments and
materials, including those donated to the Commission which are of
international sports standard not available from local manufacturers and
only in such numbers as may be required in the development of various
sports or training of the national pool of athletes. The importation of
sportswear, equipment, supplies, instruments and materials by the POC,
including those donated to it and to thc various national sports
associations as certified under oath by the Commission as required and
necessary for the development of sports in the country shall also be
exempt from the payment of customs duties, taxes and tariffs.

Section 20, Tax Deduction or Exemption of Donations and
Contributions. — All donations and contributions to the Commission and
the POC in connection with their respective fund-raising projects and
continuing sports development programs shall be exempt from the
donor's taxes, and shall be deductible in full in the computation of the
taxable net income of the donor. Donations and contributions to the POC
and the various national sports associations certified by the Commission
to be pursuant to the development of sports in the country shall likewise
be exempt from the payment of the donor's and estate taxes and shall be
deductible in full in computing the taxable net income of the donor,

Section 21. Travel and Airport Tax Exemptions. — The Commission
and the delegations or representatives of the POC to any international
sports convention, conference and meeting, and athletes, coaches and
other officials to any international competition shall be exempt from the
payment of travel tax, airport tax and any other travel related taxes or
fees now or hereafter imposed by law or regulation.


Section 22. Presidential Grants, — The provisions of any existing law
lo the contrary notwithstanding, the President may grant by donation,
sale, lease or otherwise, to the Commission portions of the land of the
public domain as may be necessary for the establishment of sports
training centers in the country and such other facilities that may be
maintained and used by the commission for the training and development
of athletes and for the accomplishment of any of its purposes.

Section 23. Sports Facilities. - The administration and full control of
all existing sports facilities, including land, buildings and equipment,
owned by the national government as well as those owned by government.
funded foundations, associations and entities except liabilities, shall be
transferred to the Commission: Provided, That the sports facilities owned
by the local government units, state colleges and universities, or public
schools shall remain with the said institutions or entities : Provided,
further, That the management and full control of all the land, buildings,
equipment and other improvements thereon of the Rizal Memorial Sports
Complex, and the Quezon City Velodrome shall remain with the
Commission,

The Commission shall continue to have full control and management
of the University of Life (UL) Sports Complex and shall have full use of
and access to the facilities of the sports complex. The UL sports complex
include: (a} sports facilities consisting of grandstands, tennis and
basketball courts, stadium oval and track and field, swimming pools, pool
grandstand and viewing rooms, and related equipment and accessories;
(b} ten (10) dormitory buildings, nos. A to J; (c} substations,
conditioning building, control rooms, switch houses and light towers,
centralized air-conditioning system, standby generaiors and PABX

telephone system; and (d) all other sports-related equipment and support
facilities.

Section 24. Assistance by the Government Entities. — The
Commission may call upon any government entity for assistance in the
performance of its functions and duties. Ail heads of departments,
agencies, corporations and offices of the government are hereby enjoined
to render full assistance and cooperation to the Commission to ensure the
attainment of its objectives and the success of the national sports
development program.

Section 25. Funding. - To finance the country's integrated sports
devclopment program, inchiding the holding of the national games and all
other sports competitions at all levels throughout the country as well as
the country’s participation in international sports competitions, such as,
but not limited to, the Olympic Games, Asian Games, Southeast Asian
Games, and all other international sports competitions, sanctioned by the
International Olympic Committee and the International Federations,
thirty percent (30%) representing the charity fund of the proceeds of at
least one (1) sweepstakes and lotto or lottery draws per month or Five


Hundred Million Pesos (PHP 500 milion) annually, whichever is higher, of
the Philippine Charity Sweepstakes Office (PCSO}, taxes on horse races
from at least one (1} horse racing day per month to be determined jointly
by the Philippine Racing Commission and the Commission at the start of
each year, five percent (5%) of the total gross income of the Philippine
Amusement and Gaming Corporation (PAGCOR) to be computed after the
franchise tax shall have been deducted or at least Onc Billion Pesos (PHP
1.0 billion) annually , whichever is higher, and the proceeds from the sale
of stamps as hereinafter provided, shall be automatically remitted directly
to the Commission and are hereby constituted as the National Sports
Development Fund. Further, the Philippine Postal Service Corporation is
hereby authorized to print paper and gold stamps which shall depict
sports events and such other motif as the Philippine Postal Service
Corporation may decide, at the expense of the Commission.

Any deficiency in the financial requirements of the Commission for
its sports development program shall be covered by an annual
appropriation passed by Congress: Provided, That the operating expenses
for the Commission itself shall not exceed twenty percent (20%) of the
annual appropriation: Provided, further, That. eighty percent (80%) of said
annual appropriation and all of the National Sports Development Fund,
as herein provided, shall be disbursed for the national sports development
program, particularly, in support of the identification, recruitment and
training of athletes in pre-regional, regional, national and international
competitions.

Section 26. Transitory Provision. - Upon approval of this Act, the
incumbent Chairperson and the four (4) Commissioners appointed by the
President, shall continue in office until the expiration of their term as
provided herein.

Further, the incumbent Executive Director, Deputy Executive
Directors, staff, officers and employees of the Commission shall likewise
continue in office, unless they are sooner removed for cause or become
incapacitated to discharge the duties of their office.

Section 27. Repealing Clause, —- RA 6847 is hereby repealed. All
laws, presidential decrees, executive orders, presidential proclamations,
rules and regulations or parts thereof inconsistent with this Act are
hereby repealed or modified accordingly.

Section 28, Separability Clause, —~ If any provision of this Act is
declared unconstitutional, the same shall not affect the validity and
effectivity of other provisions hereof.

Section 29. Effectivity. — This Act shall take effect fifteen (15) days
after its publication in a newspaper of general circulation.

Approved.