Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House BILLNO. #24

Introduced by Honorable Roberto “Robbie” V. Puno

EXPLANA ‘ORY NOTE

Now more than ever, sports has proven to be a galvanizing force for national
unity and a source of national pride.

To date, there are several government agencies with varied functions
handling the development of sports in the country. The Department of Education
organizes the annual Palarong Pambansa while the Games and Amusement Board,
among others, supervises professional sports and the licensing of professional
athletes. ‘The Philippine Sports Commission, in coordination with the Philippine
Olympic Committee, dispenses public funds for various sports programs. The local
government units have their own respective sports programs. However, despite the
plurality of relevant laws and responsible agencies, the present state of Philippine
sports leaves much to be desired.

This bill seeks to declare a national policy for sports as an engine for nation-
building, social progress, and promotion for total human development, and to
create a Department of Sports that will implement the essential programs pursuant
to this policy.

Article XIV, Section 19 of the 1987 Constitution expressly provides that the
State shall encourage sports to foster self-discipline, teamwork and excellence for
the development of a healthy and alert citizenry. The UNESCO International
Charter of Physical Education and Sports, of which the Philippines is a signatory,
stresses that the practice of sport is 2 fundamental right for all, which is essential to
every aspect of personality development. Participation in sports not only helps



every aspect of personality development. Participation in sports not only helps
people lead healthier and happier lives, it also develops essential skill sets that help
them contribute to nation building and social progress.

With the creation of a Department of Sports, one body will provide and fully
implement an integrated national sports promotion and development program,
which will comprehensively address the issues in the industry and shall embody
the Philippines’ aspirations in sports. The Department of Sports shall likewise set
the parameters to address the needs of promising athletes. Issues affecting the
country’s performance in international competitions such as the absence of a
comprehensive nationwide sports program, obsolete training methods, inefficient
competitive facilities and inadequate equipment will finally be addressed properly.

Further, the Department of Sports will serve as the voice in discussing the
issues pertinent to the development of effective sports programs. It will also
provide the necessary impetus, direction and policy guidance to improve the
performance of our athletes in both domestic and international sporting events or
competitions.

‘Thus, in recognizing sports as an essential component in youth development
and a necessary ingredient in nation-building, the time is ripe for the government
to prioritize sports in the national agenda.

In view of the foregoing, immedias Passage oe sought.

ROBERTO 4ROBBIE”'V, PUNO



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

214
HOUSE BILL NO.

Introduced by Honorable Roberto “Robbie” V. Puno
AN ACT DECLARING A NATIONAL POLICY FOR SPORTS AS
AN ENGINE FOR NATION BUILDING, SOCIAL PROGRESS AND
PROMOTION OF TOTAL HUMAN DEVELOPMENT, AND CREATING
THE DEPARTMENT OF SPORTS, DEFINING ITS POWERS AND
FUNCTIONS AND APPROPRIATING FUNDS THEREFOR

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

CHAPTER I
GENERAL PROVISIONS,

SECTION 1. Title. — This Act shall be known as the “Department of
Sports Act of 2019.”

SEC. 2. Declaration of Policy. — \t is hereby declared the policy of the
State:

a) To recognize the vital role of sports to nation building, acceleration of
social progress and promotion of total human liberation and development;

b) To establish a single, unified and integrated national sports body to
take the lead in developing Filipino athletes to their fullest potential and put
Philippine sports into its utmost performance;

c) To sustain the development of sports in the country through a
Integrated National Sports Promotion and Development Program to foster physical
fitness, self-discipline, teamwork and excellence for the development of a healthy
and alert citizenry;


4) To promote youth participation through the development and
implementation of a physical education curriculum that encourages and promotes
sports;

e) To ensure equal access to physical education and sports, which are
essential for the full development of a person’s personality;
f) To encourage sports programs, league competitions, and amateur

sports, including training for international competition, to foster self-discipline,
teamwork and excellence for the development of a healthy and alert citizenry;and

2) To promote excellence in sports, and through sports, by providing for
the welfare of national athletes, coaches and trainers competing for the country.

SEC. 3. Objectives. — Pursuant to the above declaration, the State shall
adopt the following objectives:

a) Prepare, formulate, implement and oversee an integrated and
comprehensive nationwide sports promotion and development program in
consultation with the stakeholders as well as other government agencies, non-
governmental organizations, associations and groups involved in sports;

b) Promote a nationwide ‘grassroots-based sports development program
and strengthen the sports club system;

c) Encourage the participation of Filipino athletes in regional and
international sports competitions including, but not limited to, the South East Asian
Games, the Asian Games, the Olympics, the Paralympics, the Universiade or
World University Games as well as international, regional and world competitions
staged by other reputable international sports associations, federations and
organizations;

d) Promote leadership in the development of sports in the country,
formulate the policies, and set the priorities and direction of all national amateur
sports promotion and development;

e) Encourage wider participation of all sectors, government and private, in
amateur sports promotion and development;

f) Improve the performance of Filipino athletes in regional and
international sports competitions and develop athletes to become a source of
national pride:

2) Provide resources, services and facilities to enable Filipinos to pursue
and achieve excellence in sports; and

h) Foster peace and camaraderie within the country through competitive
and recreational sports;


CHAPTER IL
DEPARTMENT OF SPORTS

SEC. 4. Mandate. — The Department of Sports, hereinafter referred to as
the Department, is hereby established to carry out the above-declared policies and
objectives. It shall be the primary policy, planning, programming, coordinating,
implementing and regulating agency in the promotion and development of sports
and physical fitness in the country. It shall instill in the Filipino the industry’s
fundamental importance in nation building and social progress; and in fostering
peace and camaraderie.

SEC. 5. Duties and Functions. — The Department shall exercise the
following duties and functions:

a) Prepare, fully implement and oversee an Integrated Sports Promotion
and Development Program consistent with the policies declared in Section 3
hereof, in coordination with various sectors involved in sports, including the
Philippine Olympic Committee, the national sports associations, the public and
private schools, government corporations and entities, the local government units,
the Armed Forces of the Philippines, and other sports organizations and private
corporations;

b) Establish and imaintain linkages with international sports associations,
national sports organizations of other countries and international non-governmental
organizations whose common main objective is sports;

c) Establish, develop and maintain fully-equipped sports facilities and
centers in strategic places in the country and, as far as practicable, include modern
sports complexes adequate for major international competitions;

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

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

fy Delineate and define areas of responsibilities of all sectors involved in
sports promotion and development, respecting the individual set-up, priorities,
structure and competence of the different government and private institutions;

8) 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:


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h) Provide such incentives, recognitions and awards to deserving
associations, athletes, game officials, coaches, trainers and other persons or entities
involved in or supporting sports development;

i) Recommend and propose to the Department of Education (DepEd),
Department of the Interior and Local Government (DILG) and other government
agencies and instrumentalities, which conduct sports programs, to incorporate in
their respective annual budget a separate and specific budget for sports promotion
and development;

Dd Encourage, promote and sustain the creation and establishment of
regional, provincial, municipal and barangay or school district sports promotion
and development councils, composed of officials of the DepEd, DILG, local
government units (LGUs) and representatives of the private sector, which shall
initiate, conduct and coordinate sports activities in their respective jurisdictions;
and

k) Exercise such other acts as are incident to or are appropriate and
necessary in connection with the creation of the Department.

SEC. 6. Powers of the Department. — The Department shall exercise the
following powers to do all acts and things necessary to be done in connection with
the performance of its functions:

a) Appoint the officers and other personnel of the Department and fix their
compensation subject to existing laws, rules and regulations;

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

c) Enter into contracts;

d) 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 Department;

) Acquire, own, possess and dispose of any real or personal property;

f) Regulate the acquisition, procurement, distribution and use of
sportswear, equipment, instruments, tools and other Sports essentials necessary and
required for training of a national pool of athletes;

g) Confer, extend and grant awards, benefits and privileges to athletes and
officials for outstanding performances in national and international competitions;

h) Confer, extend and grant support or assistance to sports associations
which are in good standing with the Department;

i) Exercise supervisory and visitorial powers over the national sports
associations in connection with their sports promotion and development programs
with respect to which financial assistance is extended by the Department;



j) Accept donations, gifts, bequest and grants for the purposes of the
Department;

k) Ensure the implementation by various government departments and
agencies of their sports promotion and development programs as indicated in their
respective annual budgets;

1) Impose sanctions upon any national sports association, institution,
organization, body, entity, team, athletes and sports official for violation of its
policies, rules and regulations; and

m) Perform any and all other acts incidental to or required by virtue of its
creation.

SEC. 7. Secretary. — The authority and responsibility for the discharge of
its power and functions shall be vested in the Secretary who shall have supervision
and control of the Department. The Secretary shall be appointed by the President
of the Philippines subject to the confirmation by the Commission on
Appointments.

SEC. 8. Duties of the Secretary. — The Secretary shall perform the
following duties:

a) Exercise over-all supervision and direction over the entire operations
of the Department and its attached agencies;

b) Establish policies and standards for the effective, efficient and
economical operation of the Department in accordance with the programs of the
government;

c) Review and approve requests for financial and manpower resources of
all operating offices of the Department;

d) Designate and appoint officers and employees of the Department in
accordance with the civil service laws, rules and regulations;

©) Advice the President on the promulgation of executive and
administrative orders, regulatory and legislative proposals on matters pertaining to
the promotion and development of sports and physical fitness in the country;

f) Implement and enforce policies, decisions, orders, rules and
regulations issued by the Department;

g) Execute contracts, incur obligations, acquire and dispose of assets and
deliver documents on behaif of the Department;

h) Approve the organizational structure, staffing pattern, operating and
capital expenditures of the Department; and

i) Exercise such other powers and functions and perform such other
duties as may be authorized, delegated, or assigned.



SEC. 9. Undersecretaries and Assistant Secretaries. — The Secretary shall
be assisted by three (3) Undersecretaries and three (3) Assistant Secretaries all of
whom shall be appointed by the President from a list of nominees submitted by
duly recognized sports associations and organizations in the Philippines.

SEC. 10. Qualification. — The Secretary, Undersecretaries and Assistant
Secretaries of the Depariment must be citizens of the Philippines, publicly
recognized personalities in the field of sports, at least thirty (30) years of age and
of good moral character.

SEC. 11. Compensation. — The Secretary, Undersecretaries and Assistant
Secretaries shall be entitled to compensation and to other benefits and privileges
provided under existing laws.

SEC. 12. Regional Offices. — The Department shall establish, operate and
maintain a regional office in each administrative region of the country. The
regional office shall be headed by a regional director and assisted by an assistant
regional director.

The regional offices shall, within their respective administrative regions,
exercise the following functions:

a) Implement laws, policies, plans, programs, projects, rules and
regulations of the Department;

b) Provide efficient and effective service to the people;

c) Coordinate with regional offices of other departments, offices, and
agencies;

d) Coordinate with the local government units; and

) Perform such other functions as may be provided by law.

SEC. 13. Structure and Staffing Pattern. — ‘The Secretary shall determine
the organizational structure and create new divisions or units as may be deemed
necessary and shall appoint officers and employees of the Department in
accordance with the civil service rules and regulations.

SEC. 14. Secretariat. - The Department shall create a secretariat which
shall be primarily responsible for the financial management, personnel records,
supplies and equipment, public information and production, transportation,
communication, legal, policy research and planning, and such other functions and
responsibilities as may be necessary and required by the Department.


SEC. 15. Special Bureaus. — To ensure the proper and efficient
implementation of this Act, the following special bureaus under the Department
are hereby created:

a) Amateur Sports Development Bureau; and

b) _ International Sports Development Bureau.

SEC. 16. Amateur Sports Development Bureau (ASDB). — The Amateur
Sports Development Bureau shall be headed by an executive director and shall be
primarily responsible for the promotion and development of amateur sports in the
Philippines.

The ASDB shall exercise the following functions:

a) Plan, implement and oversee an integrated nationwide amateur sports
promotion and development program for the country in coordination with various
sports sectors, which among. others include the public and private schools,
government corporations and efitities, the LGUs, the Armed Forces of the
Philippines and such other sectors in the sports industry;

b) Encourage and promote the creation and establishment of regional,
provincial, municipal and barangay sports promotion and development councils,
which shall initiate, conduct and coordinate sports activities in their respective
jurisdiction; |

c) Provide the leadership and set the priorities and direction of all national
amateur sports promotion and development, giving emphasis on grassroots
participation;

d) Encourage wide participation of all sectors, government and private, in
amateur sports promotion and development;

e) Promote social and cultural integration through the revival of
indigenous games and sports;

f) Identify and nurture sports talents for further development and
promote excellence in sports, traditional games and other physical activities;

g) Recommend the formulation of policies and programs that will foster
the development of amateur sports specially in the grassroots level;

h) Impose sanction upon any national sports association, institution,
organization, body, entity, team, athlete and sports officials engaged in amateur
sports for violation of its policies, rules and regulations;

i) Ensure the implementation by various government departments and
agencies of their sports promotion and development programs as indicated in their
respective annual budgets; and

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j) Perform acts which are necessary or incidental to the proper exercise of
its functions.

SEC. 17. Offices under the ASDB. — To ensure efficiency and
specialization, there shall be two offices established under the ASDB, as follows:

a) Grassroots Sports Development Division; and

b) National and Local Sports Competition Division.

SEC. 18. Grassroots Sports Development Division. — The Grassroots
Sports Development Division shall have the following functions:

a) Formulate and implement a physical fitness testing and evaluation
program to determine, monitor and establish a fitness profile of the different
sectors of society, and a grassroots development program in order to encourage,
improve and enhance the physical fitness and participation in sports of the citizens
at the city, municipality and barangay level;

b) Develop and implement, in coordination with the Department of
Education, a physical fitnes$ editcation curriculum in the basic education system
that will foster and promote participation in sports;

c) Support the formation of sports club in schools, workplaces, cities,
municipalities and barangays and the conduct of activities aimed at encouraging
the citizens to participate and successfully compete in sports and various physical
activities;

d) Provide technical assistance to grassroots sports stakeholders;

) Assist public and private educational institution in the implementation
of the intramural sports program and encourage competitive activities between and
among grassroots sports clubs; and

f) Develop the criteria for and implement an awards and incentives
scheme to encourage mass grassroots sports participation, sustained involvement
and excellent performance in grassroots sports activities.

SEC. 19. National and Local Sports Competition Division. — The National
and Local Sports Competition Division shall have the following functions:

a) Plan and conduct regular formal and informal sports competitions at
the national and local levels;

b) Establish and implement a system for identifying and developing
athletic talents for inclusion in the developmental athletes pool; and

c) Plan, implement and administer all aspects of the training program
and the preparation and participation for international competition of the
developmental athletes pool.

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SEC. 20. International Sports Development Bureau. — The International
Sports Development Bureau to be headed by an executive director shall have the
following functions:

a) Formulate and recommend the adoption of a national training and
development program for athletes participating in international competitions in all
relevant sports, in coordination and cooperation with the concerned national sports
association;

b) Plan, implement and administer all aspects to ensure succesful
participation of the country in regional and international sporting events, games
and competition;and

c) Ensure the availability of adequate budget and resources for said
purposes.

SEC. 21. Division under the International Sports Development Bureau. —
There shall be established two divisions under the International Sports
Development Bureau, as follows:

a) —_ National Sports Association Affairs Divisions; and

b) _ International Sports Competition Divisions.

SEC. 22. National Sports Association Affairs Division. — The National
Sports Association Affairs Division shall have the following functions:

a) Process, facilitate and oversee agreements and transactions conducted
between and among the Department, national sports associations and other local
and international sports institutions, federations, associations and organizations to
ensure their compliance with the policies and programs of the Department;

b) Facilitate all necessary arrangements for the participation of national
athletes in international competitions;

c) Develop, prescribe and ensure the observance of criteria and standards
for athletes and sports teams representing the country in international competitions;

d) Prescribe the criteria for selecting individuals, associations or clubs
entitled to financial and other forms of support to enable their participation in
international conferences, seminars, clinics, competitions and similar programs;
and

e) Establish appropriate linkages with international sports bodies.

SEC. 23. International Sports Competition Division. — The International
Sports Competition Division shall have the following functions:


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a) Coordinate with the national sports associations and the Philippine
Olympic Committee for the preparation and training of the members of the
national athlete’s pool;

b) Develop, prescribe and monitor the implementation of criteria for the
selection and retention of members of the national athletes’ pool supported by the
Department;

c) Coordinate with the national sports association in monitoring and
conducting periodic evaluation of members of the national athletes’ pool;

d) Assist the national sports association in the selection of national team
members for international competition; and

e) Identify and recommend athletes, coaches and international sports
participants who may qualify for awards and incentives.

CHAPTER IIL
NATIQNAL.OLYMPIC COMMITTEE

SEC. 24. Philippine Olympic Committee. — The Philippine Olympic
Committee which is affiliated with the International Olympic Committee shall
continue to be recognized as the National Olympic Committee for the Philippines.
It is autonomous in character.

The Phillipine Olympic Committee shall maintain its primary
responsibilities for activities pertaining to the country’s participation in the
Olympic Games, Asian Games, Southeast Asian Games and other international
athletic 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.

SEC. 25. Functions, — The Philippine Olympic Committee shall have the
following powers and functions:

a) Be responsible for the representation of the Philippines in all
international sports competition and undertake the organization of these games
when held in the Philippines;

b) Arrange the transportation and housing of the national delegation in the
Olympic Games, Asian Games, Southeast Asian Games and other events held
under the patronage of the International Olympic Committee and Olympic Council
of Asia;


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c) Be responsible for the behavior of the members’ of the Philippine
delegation in all games and events;

d) Prescribe and determine, in consultation with the respective national
sports association, the clothing and uniforms to be worn by the members of the
Philippine delegation in all international sports competition in accordance with
what is prescribed by their respective sports;

e) Strive against deviation from sporting principles particularly against all
forms of doping under the World Anti-doping Code;

f) Exercise the exclusive right to use the Olympic symbol, flag, motto and
anthem within the framework of its non-profit activities: Provided, That such use
contributes to the development of the Olympic movement and does not detract
from its dignity;

g) Coordinate closely with relevant international organizations recognized
by the International Olympic Committee, particularly the Olympic Council of Asia
and the Southeast Asian Games Federation;

h) Participate in the Rivitics of the International Olympic Committee’s
olympic solidarity;

i) Actas final arbitrator of all i intra-national sport associations conflicts and
disputes, as well as, cases arising from or in connection with the Olympic Games
or any form of doping offences in case the same disputes cannot be settled or
resolved with the national sports associations’ processes and procedures; and

j) Perform such other acts as may be deemed necessary for the pRones
accomplishment of their purposes.

CHAPTER IV |
NATIONAL SPORTS ASSOCIATIONS

SEC. 26. National Sports Associations. — The national sports associations,
organized for their respective sports in the Philippines and affiliated with their
respective international federations which are recognized by the International
Olympic Committee, shall be recognized as such by the Department. The
Department shall also recognize special national sports associations to represent
the differently-abled and school-based sports associations which shall, for all intent
and purposes, have the same status, privileges and obligations as regular national
sports associations.

The national sports associations recognized by the Department shall be
autonomous and shall have exclusive technical control over the promotion and

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development of the particular sport for which they are organized, subject however
to the supervisory powers of the Department.

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

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

a) Adopt a constitution and by-laws not inconsistent with this Act;

b) Raise funds by donations, benefits and other means for their purposes;

c) Purchase, sell, lease or otherwise encumber property, real or personal,
for the accomplishment of their respective purposes;

d) Affiliate with international or regional sports associations,

e) Conduct competition’ for the promotion of their respective sports;

f) Appoint their representative to the Philippine Olympic Committee;

g) Decide all questions on the amateur status and discipline of the athletes
and officials connected with the associations as well as the members as and all
disputes between members;

h) Adopt, in coordination with the Philippine Olympic Committes, a
training program for the development of the athletes and their preparation for
international competitions;

i) Select the athletes, coaches and other officials for their national teams
taking into consideration not only their athletic abilities but also the discipline,
moral character, aptitude and attitude;

j) Keep accurate records of all official marks, scores and a attained
by the athletes in all competitions, as well as all results of sports competitions,
recognize and confirm the same and furnish copies to the Department;

k) Qualify and license referees, umpires and other game officials who shall
officiate in competitions in their respective sports; and

1) Perform such other acts as may be deemed necessary for the proper
accomplishment of their purposes.

SEC. 27. Incentives and Other Non-monetary Benefits. - The Department

shall grant incentives, cash and other non-monetary benefits to all national athletes,
coaches and trainers who bring honor and recognition to the country by winning in

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international competitions pursuant to Republic Act No. 9064, otherwise known as
“Sports Benefits and Incentives Act of 2001.”

CHAPTER V
MISCELLANEOUS

SEC. 28. Tax Exemption. — To encourage popular participation in amateur
sports, no tax of any kind shall be levied on the use of sports facilities, whether the
tax be on the user, owner or operator of the sports facility.

SEC. 29. Donations and Contributions. — All donations and contributions
to the Department in connection with its fund-raising projects and its 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 various national sports certified by the
Department pursuant to thé ‘devélopment 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.

SEC. 30. Exemption from Travel Taxes. — The Department and its
delegation or representatives to any international sports competitions, conventions,
conferences, meetings and events, 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.

SEC. 31. Presidential Land Grant. — The provisions of any existing law to
the contrary notwithstanding, the President may, upon the recommendation of the
Secretary of Environment and Natural Resources, grant by donation, sale, lease or
otherwise, to the Department portions of the land of the public domain as may be
necessary for the establishment of regional training centers in all the regions of the
country and for the accomplishment of any of its purposes.

SEC. 32. 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 shall be transferred to the Department. The sports

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facilities owned by the local government units, state colleges «nd universities, or
public schools shall remain with the said institution or entities.

The management and full control of all the land, buildings, equipment and
other improvement of the government-owned sports complex and velodrome shall
be transferred to the Department upon the effectivity of this Act.

SEC. 33. Assistance by Government Entities. — The Department may call
upon any government entity for assistance in the performance of its functions and
duties. All heads of departments, agencies, corporations and offices of the
government are hereby enjoined to render full assistance and cooperation to the
Department to ensure the attainment of its objectives and the success of the
national sports development program.

CHAPTER VI
Tp gee
TRANSITORY PROVISIONS

SEC. 34. Abolition of the Philippine Sports Commission. - The Philippine
Sports Commission created under Republic Act No. 6847 is hereby abolished. The
powers and functions, applicable funds and appropriations, records, equipment,
property and personnel shall be transferred to the Department.

‘The Philippine Sports Commission shall conduct an inventory of its assets
and liabilities, and shall turn over all properties, together with the inventory, to the
Department and wind up their respective affairs within six (6) months after
effectivity of this Act.

All programs, contracts and projects of the Philippine Sports Commission,
which are inconsistent with the policies and provisions of this Act, shall be
terminated on or before six (6) months from the enactment of this Act. Contracts,
programs and projects, which canriot be unilaterally terminated shall remain in full
force and effect. The Department shall negotiate for the rescission of the contract
or termination of the project or program for a period earlier than what has been
previously agreed upon.

The transfer of functions, assets, funds, equipment, properties, transactions
and personnel and formulation of the internal organic structure, staffing pattern,
operating system and revised budget of the Department, shall be completed within

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six (6) months from the effectivity of this Act, during which time, the existing
personnel shall continue to assume their posts in holdover capacities until new
appointments are issued; Provided, That after the abolition of the Philippine Sports
Commission as specified in this Section 29, the Department, in coordination with
the Department of Budget and Management, shall determine and create new
positions, the funding requirements of which shall not exceed the equivalent cost
of positions abolished.

SEC. 35. Security of Tenure. — In the implementation of this Act, there
shall be no undue separation of personnel. In the event that the lay-off of
personnel becomes unavoidable because of the abolition of their office or
positions, mitigation measures shall be adopted such as redeployment of separated
employees to other appropriate departments, agencies or entities.

SEC. 36. Separation from Service. — Employees separated from the service
as a result of this reorganization shall, within ninety (90) days therefrom, receive
the separation or retirement benefits to which they are entitled under the law. The
separation pay or retirement benefits shall have priority of payment out of the
savings of the agency.

SEC. 37. Appropriation. — In order to provide the necessary funds required
for the organization and initial calendar year of operational expenditures of the
Department, the amount of Two hundred million pesos (P200,000.000.00) from the
National Treasury is hereby appropriated. Thereafter, such amount necessary for
the continued operation of the Department and the implementation of the country’s
integrated sports development program shall be included in the annual General
Appropriations Act.

SEC. 38. National Sports Development Fund. — To finance the country’s
integrated sports development program, including the holding of the national
games and all other sports competitions at all levels throughout the country as well
as to carry out well-planned preparations to sustain the complete needs of national
and development athletes during the country’s preparation and participation at
international sports competitions, such as, but not limited to the Olympics, Asian
Games, Southeast Asian Games, Paralympics, Universiade or World University
Games and other international competitions sanctioned by international sports
institutions, federations, organizations and associations, thirty percent (30%) of the
charity fund representing the proceeds of six (6) lottery draws per annum of the
Philippine Charity Sweepstakes Offices, taxes on horse races from ten (10) racing

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days to be determined by the Philippine Racing Commission and the Department,
five percent (5%) of the gross income before taxes of the Philippine Amusement
and Gaming Corporation, the proceeds from the sale of stamps as hereinafter
provided shall be automatically remitted directly to the Department by the
concerned entity and are hereby constituted as the National Sports Development
Fund.

Further, the Philippine Postal Corporation is hereby authorized to print paper
and gold stamps which shall depict sporting events and such other motif as the
Philippine Postal Service Office and the Department may agree at the expense of
the Department.

SEC. 39. Implementing Rules and Regulations. — Within ninety (90) days
from the effectivity of this Act, the Secretary of Sports shall issue the necessary
rules and regulations for the effective implementation of this Act.

SEC. 40, AnnualReport. — The Secretary of Sports shall submit to
Congress an annual report generally dealing with the activities and operations of
the Department, together with the audit report of the relevant accounts.

SEC. 41. Separability Clause. — If any provision or part of this Act is
declared invalid or unconstitutional, the remaining parts or provisions not Guages
thereby shall remain in full force and effect.

SEC. 42. Repealing Clause. — Republic Act No. 6847, otherwise known as
the “Philippine Sports Commission Act” is hereby repealed. All other laws, rules,
regulations, orders, circulars, and other issuances or parts thereof, which are
inconsistent with the provisions of this Act are hereby repealed or amended
accordingly

SEC. 43. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general circulation.

Approved