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

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

House Bill No.__©

Introduced by Honorable Amado S. Bagatsing

EXPLANATORY NOTE

The Philippine Racing Commission was created on March 20, 1974 through
Presidential Decree No. 420 in order to have a thorough and closer supervision and
control of all aspects of the sport as well as to insure and safeguard the benefits to the
public. With the passage of PD 420, this sustained the recognition of the State in
acknowledging the potential of horseracing as an industry aimed at generating much
needed revenues and employment for the country

Thirty nine years have lapsed and the time has come to review and update the law
that created the Philippine Racing Commission to make it catch up with technology
changes as well as meet the increasing need for better government support to the
industry. As one of the oldest and universally popular diversions of man, horseracing has
become highly specialized and sophisticated reaching the level of quality sport such that
its operations and regulatory requirements need to be given more attention by the
government ;

‘Thoroughbred horseracing and horse breeding in the country today is still far from
ideal. Although we enjoy more than a hundred years’ head start on organized
Thoroughbred horseracing compared to most of Asian countries, still we lag behind in
introducing innovations in the industry to the point that we have been overtaken by other
countries. A renewed vision for the industry will give it a clear direction it needs for it to
progress. As the situation calls for it, the stakeholders have started to anticipate the
growth demanded by the industry and they have, on their own initiative, set-up plans for
expansions

With the continuous growth and expansion of the Thoroughbred horseracing
industry, it is most imperative that we integrate all aspects of horseracing under one body
which will orchestrate the activities of the entire sector to include not just horse racing
operations and its betting aspects but also that of horse-breeding and the licensing of the
personnel involved in the sport.


Taking note of the challenges facing the country, the growth of the industry has to
be steered by a viable government organization which will promote and encourage
investments, act as regulator and be the leader in securing the future of the stakeholders.
The attainment of these ends will be best achieved by a separate and autonomous
corporate body that will closely supervise all aspects of Thoroughbred horse racing,

Considering the great potential of the Thoroughbred horse racing industry as a
revenue and employment provider for the country, this bill seeks to address the much
needed legislation which will respond to the demands of the industry stakeholders

This bill is a refiled bill of House Bill No. 224 entitled “An Act Creating The
Philippine Thoroughbred Horseracing Authority Providing Funds Therefor And For
Other Purposes”, authored by the undersigned during the 15" Congress and was
substituted by House Bill No. 6329 with the following additional authors:
Representatives Calimbas-Villarosa, Gullas, Fabian and Lapus, per Committee Report
No, 2253

It is therefore urgently requested that the early passage of this bill be considered

by this Congress

AMADO S. BAGATSING
Representative
5 District, Manila



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

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

$1

‘House Bill No.

Introduced by Honorable Amado S. Bagatsing

AN ACT CREATING THE PHILIPPINE THOROUGHBRED HORSERACING
AUTHORITY, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

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

SECTION I. Title, — This Act shall be known as the “Charter of the
Philippine Thoroughbred Horseracing Authority”

SEC. 2. Declaration of Policy and Objectives. ~ It is the declared policy of the
State to promote the growth, expansion and development of the thoroughbred
horseracing industry in accordance with the following objectives:

(a) To promote, ensure and maintain the efficient, honest and fair operation of
the thoroughbred horseracing industry;

(b) To maintain public confidence in the thoroughbred horseracing sport;

(©) To encourage and ensure the professional development of the horseracing
personnel;

(d) To improve and upgrade the breed of Philippine thoroughbred racehorses;
and

(e) To give impetus to the development of the country’s economy by providing
opportunities for revenue and employment generation through the horseracing
industry,

SEC. 3. Definition of Terms. - .

(a) Horse Racing refers to a contest of speed among thoroughbred horses which

are ridden by jockeys and shall include the aspect of sports and betting,


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(6) Horseracing Industry refers 10 the various enterprises that encompass
activities related to the racing of thoroughbred horses, .

(©) Horse Breeding refers to the activity related to the improvement or
development of thoroughbred horses done by selective mating to produce horses for
racing and breeding either for domestic use or export.

(a) Thoroughbred refers to a horse specifically bred far racing that can trace its
lineage back to three (3) original sires, namely: Darley Arabian, Godolphin Arabian
and Byerley Turk

(©) Breeding Stock refers to thoroughbred horses used for selective mating
purposes.

() Quarantine refers to a period of detention or isolation imposed on horses
upon arrival at a port or place to screen them for infectious or contagious diseases
before they are allowed to be transported elsewhere within the country

(g) Race Horses refer to thoroughbred horses used for the activity of horse
racing

(h) Horse Owners refer to people who are duly licensed by the Authority as
having the legal right to own race horses and all other rights appertaining thereto,

(i) Trainers refer to qualified persons who are in charge of conditioning horses
in preparation for races and who are duly licensed by the Authority.

i) Assistant Trainers refer to the qualified assistants of trainers of race horses
who are licensed by the Authority.

(k) Jockeys refer to qualified persons who ride horses professignally in horse
races and who are duly licensed by the Authority after having fulfilled the requirements
to reach that status and also known as joumneymen jockeys.

()) Apprentice Jockeys refer to qualified persons who ride horses professionally
in races, duly licensed as such by the Authority, but deemed as junior in status to
journeymen jockeys

(m)Jockeys’ Helpers refer to persons who act as valets for jockeys during races
and who are duly licensed by the Authority.

(n) Grooms refer to persons in charge of and take care of horses and stables and
who are duly licensed by the Authority

(0) Grooms’ Helpers refer to persons who assist grooms in the care of horses

and stables duly licensed by the Authority


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(p) Racetrack refers to a spacious plot of ground, usually oval, laid out for horse
racing,

(q) Race Meetings refer to days during which races are held at a race track

(0) Stud refers to a stallion or breeding farm.

(8) Stud Book refers to the official thoroughbred registry indicating the official
record of the pedigrees of purebred horses.

(W) Philippine National Stud Book refers to the officially published records of
thoroughbred bloodlines in the Philippines and contains the pedigree and the
comprehensive records of breeding activities of thoroughbreds in the Philippines.

(u) Stud Fee refers to the payment given by the breeder to the owner of the
stallion for its mating services.

(v) Totalizator refers to the machinery that records bets as they are made and
calculates odds.

SEC. 4. Creation of the Philippine Thoroughbred Horseracing Authority. ~
There is hereby created a body corporate to be known as the Philippine Thoroughbred
Horseracing Authority, hereinafter referred to as the Authority, which shall be attached
to the Office of the President. The Philippine Racing Commission created under
Presidential Decree No. 420 is hereby abolished

The Authority shall have its principal place of business in Metro Manila and it
may establish other offices elsewhere in the Philippines as may be necessary for the
efficient and effective conduct of its operations and business

SEC. 5. Corporate Powers and Functions, - The Authority shall be vested
with quasi-judicial functions and shall have exclusive jurisdiction in the supervision and
control over all aspects of the conduct of thoroughbred horseracing and horse
breeding, including the importation and exportation of breeding stock, framing and
scheduling of races, ownership, construction and safety of racetracks, allocation of
prizes, and security of horseracing: Provided, That the veterinary quarantine of horses
shall be a function of the Bureau of Animal Industry of the Department of Agriculture.

The Authority shall have the following powers and functions:

(a) Formulate an integrated development framework for thoroughbred

horseracing and horse breeding:


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(b) Register race horses, horse owners, trainers, assistant trainers, jockeys,

apprentice jockeys, jockeys” helpers, grooms, grooms” helpers and associations thereof
including racing clubs and their racing operation personnel,

(©) Regulate the construction and safety of race tracks including equipment and
facilities appurtenant thereto to ensure safety and security of horse racing, the welfare
of the participants and the welfare of horses;

(d) Handle the framing and scheduling of races taking into consideration the
respective operations of the franchise holders;

(@) Allocate funds for prizes and to winning entries,

(® Grant permits for the holding of races;

(g) Supervise all race meetings to assure integrity of the races at all times and
order the suspension of any racing event in case of violation of any law, ordinance, or
rules and regulations;

(h) Spearhead the promotion and marketing of all aspects of the Philippine
thoroughbred horseracing industry;

(i) Upon petition of any party or on its own discretion and after giving notice
and conducting a hearing, modify, suspend or revoke any permit or license for failure
to comply with and/or for violation of any provision of law or any order, rule or
regulation issued therewith: Provided, however, That the Authority may, without
notice, order the temporary suspension of such permit/license whenever, in its
judgment it finds it necessary and it is for the best interest of the horseracing industry;

(i) Except in cases where summary actions are taken in the settlement of dispute
and other problems connected with the conduct of horseracing, the Authority shall act
as a quasi-judicial body, and all hearings and investigations before it shall be governed
by the rules of procedure as may be adopted by it: Provided, That orders, rulings and
decisions may be appealed to the President of the Philippines within fifteen (15) days
from receipt of such order, ruling and decision;

(k) Issue subpoena ad testificandum or subpoena duces tecum or require the
production of documents material to the investigation of any case;

(1) Impose fines, penalties and forfeitures to erring parties under its rules and
regulations, which fines, penalties and forfeitures shall accrue to the funds of the
Authority;


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(m)Review, modify, approve or disapprove the rules and regulations issued by
any person or entity concerning the conduct of horse races held by them;

(n) Maintain the Philippine National Stud Book;

(0) Prescribe such rules and regulations, procedures and guidelines in the
governance of thoroughbred horse breeding and horseracing;

(p) Enforce the provisions of this Act and all rules and regulations related to
horseracing: Provided, That, the Games and Amusements Board shall continue to
exercise its supervisory and regulatory powers over the betting aspect of thoroughbred
horseracing;

(q) Form, establish, organize and maintain a subsidiary corporation or
corporations,

(0) To sue and be sued, enter into contracts, acquire, purchase, hold, lease,
transfer, dispose of property of any kind or nature necessary to carry out the purposes
of this Act;

(8) Receive and administer donations, contributions, grants, bequests or gifts in
cash or in kind from foreign governments, international agencies, private entities, and
other sources, subject to existing laws, rules and regulations;

(W) Prescribe, alter and repeal its bylaws; determine and make its operating
policies; and promulgate rules and regulations as may be necessary and expedient for
the conduct of its operations and business;

(u) Obtain insurance for or require the insurance of any property, movable or
immovable, belonging to the Authority; and

(v) Exercise all powers of a corporation under the Corporation Code insofar as
they are not inconsistent with the provisions of this Act.

The Authority shall strictly observe the requirements of due process in all its
proceedings affecting any person or entity under its supervision, especially the giving
of notices and opportunities to be heard,

SEC. 6, Board of Directors. ~ The corporate powers and functions of the
Authority shall be vested in and exercised by a Board of Directors, hereinafter referred
to as the Board, which shall be composed of a Chairperson and six (6) members who
shall be appointed by the President of the Philippines: Provided, That of the six (6)
appointive members, one (1) shall represent the horse owners’ association, one (1)

shall represent the trainers’ association, and one (1) shall represent the jockeys"


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association: Provided, further, That the Chairperson and members of the Board,
including the representatives to the Board of the horse owners’ association, the
trainers’ association and the jockeys” association, shall all meet the fit and proper rule
as defined in Republic Act No. 10149, otherwise known as the “GOCC Governance
‘Act of 2011”, and that all of them shall be appointed by the President from a shortlist
prepared by the Governance Commission for Government-Owned or -Controlled
Corporations (GCG)

SEC. 7. Term of Office. — The term of office of the Chairperson and members
of the Board shall be one (1) year unless sooner removed for cause: Provided, That the
members shall only be reappointed by the President after the members are nominated
by the GCG based on a performance score obtained under a performance criteria set by
the GCG: Provided, further, That the members shall continue to hold office until their
successors shall have been appointed and duly qualified. All vacancies, prior to the
expiration of the terms, shall be filled for the unexpired term only.

SEC. 8. Meetings of the Board. — The members of the Board shall meet
regularly once a week and as often as the exigencies of the service may demand. The
Board shall be convened by the Chairperson or upon the written request of at least
three (3) of its members. The presence of a majority of the members of the Board shall
constitute a quorum, and the vote of a majority of the members present shall be
necessary for the adoption of any rule, resolution, decision or any other corporate act.

SEC. 9. Per Diems, ~ The Chairperson and the members of the Board shall be
entitled to per diems in accordance with Section 23 of Republic Act No. 10149

SEC. 10. Powers, Functions and Duties of the Board of Directors. ~ The Board
shall have the following powers, functions and duties

(a) Formulate policies, guidelines and programs to effectively implement and
carry out the purposes, objectives and powers of the Authority;

(b) Prescribe and periodically review and revise the amount of the fees, charges
and fines as well as the penalties and forfeitures imposed on erring parties;

(©) Adopt bylaws consistent with the provisions of this Act and amend, repeal or
alter the same;

(d) Promulgate such rules and regulations, after the conduct of a public hearing,

as may be necessary and proper for the effective exercise of the powers and functions,


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as well as the discharge of the duties and responsibilities of the Authority, its officers
and employees,

(e) Authorize such expenditures of the Authority as may be necessary and proper
for its effective management, operation and administration;

(© Upon the recommendation of the General Manager of the Authority, to
determine and approve its organization and administrative structure or pattem, and fix
the compensation scheme of the officers and employees of the Authority, in
accordance with the Revised Compensation and Position Classification System;

(g) Approve the annual and supplemental budget of receipts and expenditures of
the Authority;

(h) Appoint, promote, transfer, remove, suspend or otherwise discipline the
officers of the Authority occupying executive and senior management positions,
subject to existing laws, rules and regulations, and

(i) Exercise such other powers and functions as may be necessary and proper for

the attainment of the purposes and objectives of the Autho

SEC. 11. Organization of the Authority. — ‘The General Manager shall be
elected annually by the members of the Board from among its ranks, shall be subject to
the disciplinary powers of the Board, and may be removed by the Board for cause. All
other officials and employees of the Authority shall be appointed on the basis of merit
and fitness based on a comprehensive and progressive merit system to be established
by the Authority immediately upon its organization and consistent with civil service
rules and regulations. ‘The recruitment, transfer, promotion and dismissal of all
personnel of the Authority, including temporary workers, shall be governed by such
merit system.

SEC. 12. Powers and Duties of the General Manager. — The General Manager
shall have the following powers, functions and duties:

(a) Implement, enforce and apply the policies, programs, guidelines, procedures,
decisions, rules and regulations promulgated, prescribed, issued or adopted by the
Board;

(b) Manage the day-to-day affairs of the Authority and ensure its operational
efficiency;

(©) Sign contracts, approve expenditures and payments within the budget

provisions and perform any or all acts for the proper operation of the Authority; and


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(d) Perform such other duties as the Board may assign from time to time.

SEC. 13.Charges and Fees. - The Board, after a public hearing, shall
determine, fix, impose, collect or receive reasonable charges, fees, dues or assessments
with respect to issuance of licenses and permits. All charges and fees shall be formally
promulgated as well as amendments and changes thereto. Pending the promulgation of
such new schedule of charges and fees, the current charges and fees shall continue to
apply

SEC. 14. /mplementing Rules and Regulations. — The Board shall prepare the
rules and regulations as may be necessary to implement the provisions of this Act. All
rules and regulations issued in accordance with the provisions of this Act shall be
formally promulgated and periodically reviewed and updated by the Board. Pending
the promulgation of such new rules and regulations, the current rules and regulations
shall continue to apply’

SEC. 15.Annual Budget. — The Board shall cause to be prepared and shall
adopt an annual budget of income and expenditures as well as the capital outlay for the
ensuing year

SEC. 16, Retention of Income and Special Trust Fund. — The sum equivalent to
one percent (1%) of the gross receipts derived from the total sale of tickets for all
racing events shall be retained by the Authority: Provided, That one percent (1%) of
the gross receipts derived from the total sale of tickets for pari-mutuel races shall
continue to be retained as a special fund for the use of the Games and Amusements
Board. All dues, fees, charges and other sums imposed and collected by the Authority
shall form part of a Special Trust Fund and will be used for its operational expenses
and shall be disposed of in accordance with the provisions of this Act: Provided,
further, That, at least sixty percent (60%) of the retention income shall be allocated for
prizes

SEC. 17. Investment of Funds. ~ ‘The Authority may, from time to time, invest
any of its funds not immediately required to be expended in meeting its obligations or

in the discharge of the functions of the Authorit

in such government deposits and/or
securities as approved by the Board

SEC. 18. Auditor. - In consonance with existing laws and regulations, the
Commission on Audit (COA) shall appoint a representative who shall be the Auditor of
the Authori

as well as the necessary personnel to assist said representative


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SEC. 19. Legal Counsel. - The Office of the Government Corporate Counsel
shall be the Legal Counsel of the Authority: Provided, That the Authority shall
establish its own legal department to handle the day-to-day matters affecting the affairs
of the Authority

SEC. 20. Annual Report. — The Board shall submit to the President of the
Philippines, and to both Houses of Congress, together with the Auiditor’s Report, an
annual report generally dealing with the activities and operations of the Authority
during the preceding year and containing such information relating to the operations of
the Authority

SEC. 21. Transitory Provisions. — .

(a) Transfer of Assets. ~ All existing assets, buildings, rights, interest and other
properties, whether movable or immovable, belonging to the Philippine Racing
‘Commission are hereby transferred to the Authority

(b) Transfer of Liabilities and Debts. - Upon transfer to and acceptance by the
Authority of the existing assets, building and other properties, movable and
immovable, referred to in the preceding section, all liabilities, debts and obligations of
the Philippine Racing Commission shall be assumed by the Authority.

(c) Transfer of Personnel. ~ Officials and employees of the Philippine Racing
Commission shall be absorbed by the Authority on the basis of merit and fitness:
Provided, That, employees who shall be separated by reason of this Act shall be given
all the benefits they may be entitled to under existing laws.

(d) Holdover Status of Incumbent Board, — The members of the incumbent’
Board shall continue performing their duties on holdover capacity until the new
‘members shall have been duly appointed under this Act.

SEC. 22. Enforcement of This Act. ~ The Authority shall call on the support of
all law enforcement agencies, both national and local, to enforce the provisions of this
Act.

SEC. 23. Separability Clause, - If any part or provision of this Act shall be
declared unconstitutional, the other parts or provisions hereof which ‘are not affected
thereby shall continue in full force and effect

SEC. 24. Repealing Clause, ~ Presidential Decree No. 420, Presidential Decree
No, 1095 and Republic Act No, 7324 are hereby repealed. All other laws, presidential


decrees, executive orders, rules and regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 25. Effectivity Clause. — This Act shall take effect fifteen (15) days after
its complete publication in the Official Gazette or in at least two (2) newspapers of

general circulation.

Approved,