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

SIXTEENTH CONGRESS,
First Regular

HOUSE BILL NO.

Introduced by: HONORABLE AMADO S. BAGATSING

EXPLANATORY NOTE

‘The 1987 Constitution is abundant with provisions which are designed to promote, to
the fullest extent, the growth and development of local government units

Section 25, Article 11 provides:
“The State shall ensure the autonomy of local governments.”

Likewise, Section 2, Article X, provides that the territorial and political subdivisions,
namely, provinces, cities, municipalities and barangays, shall enjoy local autonomy. Section
6, Article X provides that: “Local government units shall have a just share, as determined by
Jaw, in the national taxes which shall be automatically released to-them,””

Aside from giving local government units a just share in national taxes, the
Constitution also provides that local governments shall be entitled to an equitable share in the
proceeds of the utilization and development of national wealth within their respective areas
including sharing the same with the inhabitants by way of direct benefits.

The attached bill initially pursues these goals as mandated by the Constitution by
giving provinces, cities, and municipalities, a just share in the national taxes to enable them to
accelerate their growth and development and thus make them self-reliant communities, The
bill, herein introduced, proposes to give local government units a certain percentage of the
‘gross income of casinos established by the Philippine Amusement and Gaming Corporation
in provinces, cities, or municipalities where these casinos are located to fulfill the long-felt
need to give local governments the required financial support to foot the implementation of
projects that will hasten their full flowering as self-sustaining communities

For reasons explained, the approval of this bill is earnestly requested.

AMADO S, BAGATSING

Representative
5" District, Manila


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

SIXTEENTH CONGRESS
First Regular Session

o71

HOUSE BILL NO.

Introduced by HONORABLE AMADO S. BAGATSING

AN ACT .
GRANTING PROVINCES, CITIES, MUNICIPALITIES AND CONGRESSIONAL
DISTRICTS A SHARE IN THE GROSS REVENUES OF CASINOS DULY
ESTABLISHED UNDER THE PHILIPPINE AMUSEMENT AND GAMING
CORPORATION (PAGCOR)
Be it enacted by the Senate and House of Representatives: of the, Philippines in
Congress assembled

SECTION 1. Provinces, cities or municipalities where casinos are presently located
and established under the Philippine Amusement and Gaming Corporation (PAGCOR), shall
be granted a minimum of ten percent (10%) share in the gross revenue of casinos within their
respective jurisdictions which shall be computed based on the gross revenue after deducting
the five percent (5%) franchise tax and fifty percent (50%) of the ninety five percent (95%)
balance due the National Treasury, but in no case shall it be less than the present amount

given by PAGCOR as host city’s share of its casino.

See. 2 — All congressional districts, including partylist organizations, shall be granted
by PAGCOR the amount of One Million Two Hundred Thousand Pesos (P1, 200,000.00)

each district/party list per annum.

See. 3 — The share in PAGCOR revenue granted under Section 1 hereof shall be
allocated to fund the infrastructure, economic, and socio-civic projects of the province, city or

municipality concemed, in accordance with the following schedule:


20% Education

20% Health and Sanitation

15% Peace and Order

15% Housing, rural and urban development projects

10% Barangay community projects

5% Special projects of the province, city or municipality

5% Social amelioration projects

5% Livelihood projects

5% Sports Development

Sec.4.- The share in PAGCOR revenue, as specified in Section | hereof,

granted to provinces, cities or municipalities shall be automatically released and remitted to
the local government unit concerned on a quarterly basis without the need of any further
authorization: Provided, That, where a duly established casino is located in a municipality or
component city of a province, the share in PAGCOR revenue shall equally be divided
between the province and the city, or the municipality, as the case may be: Provided, further,
That, the same shall be allocated and used to fund the projects specified in Section 3 hereof.

Sec. 5.- The amount granted by PAGCOR to each congressional district and all other
areas of special concems of partylist representatives specified in Section 2 hereof shall be
automatically remitted on the first month of each year by the former to the Department of
Public Works and Highways to augment their infrastructure fund for allocation to the
different priority development project in each district

Sec. 6. — The Department of Finance, in coordination with PAGCOR, shall
promulgate rules and regulations necessary for the effective implementation of this Act.

Sec. 7. — All laws, executive orders, proclamations, rules and regulations which are
inconsistent with this Act are hereby repealed and or modified accordi

Sec. 8.— This Act shall take effect upon its approval.

Approved.