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

SIXTEENTH CONGRESS
First Regular Session

House BiLLNo,_3148

EXPLANATORY NOTE

This bill seeks to repeal Section 11 (a) of Republic Act No. 7835 or National Shelter Program
providing that ten percent (10%) of the mandatory annual contributions by the PCSO to the charity
fund shall be chanelled to socialized and low-cost housing.

Under PCSO’s Charter, (Batas Pambasa Blg. 42 as amended by BP 622), PCSO is the principal
agency for rising and providing funds for health programs, medical assistance and services, and
charities of national character. It holds and conducts charity sweepstakes, races, and lotteries and
engages in health and welfare-related investments, projects, and activities to provide for
permanent and continuing sources of funds for its programs. It provides for the permanent and
cotninuting sources of funds for health programs, including the expansion of existing ones, medical
assistance ans services, and/or charitable grants.

In 2012, the National Shelter Progrom received from PCSO approximately Six Hundred Ninety One
Million Pesos (PhP 691,000,000) under the latter's mandatory contributions. The policy and
objectives of the National Shelter Program are notable and should properly be supported through
government funding as it provides, at affordable cost, decent housing and basic services to
underprivileged and homeless citizens in urban centers and resettlement areas.

However, the mandatory contribution of the PCSO in this program, is beyond its mandate and
charter. The status of medical and charity servies and infrastructure in the Philippines still require
improvement and further development. Health care facilities lack medicines, health care
professionals, equipment, and infrastrutre. Poor househoulds are still not able to access quality
outpatient and inpatient care from health care faciltiies. Rural Health Units and City Health Units,
district and provincial hospitals, even DOH-retained regional hospitals and medical centers do not
have the necessary provisions to meet the needs of poor families.

PCSO should abide by its original mandate and charter. The funds for mandatory contributions
should be redirected towards the improvement and development of the country’s health and
charity services.

In light of these circumstances, the swift passage of the bill is earnestly soi

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Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Quezon City

‘SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3148

Introduced by CHRISTOPHER S. CO and RODEL M. BATOCABE

AN ACT
ABOLISHING REGULAR MANDATORY CONTRIBUTIONS IMPOSED ON THE PHILIPPINE
CHARITY SWEEPSTAKES OFFICE (PCSO), MODIFYING FOR THE PURPOSE SECTION 11
(a) OF REPUBLIC ACT NO. 7835,

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

SECTION 1. Statement of Policy. \t is hereby declared the policy of the State to guarantee
that the Charity Fund of the Philippine Charity Sweepstakes Office (PCSO) shall achive its
maximum potentional to better serve its intended beneficiaries.

SECTION 2. Abolition of Regular Mandatory Contributions of PCSO. The mandatory
contributions of PCSO as found in Section 11 (a) of Republic Act Np. 7835 or “The
Comprehensive and Integrated Shelter Financing Act of 1994” described specifically as
“Ten percent (10%) of the mandatory annual contributions by Philippine Charity
‘Sweepstakes office to the charity fund as provided for in Section 6 of R.A. No. 1169 shall be
channeled to socialized and low-cost housing” is hereinafter abolished.

Section 3. Effectivity. This Act shall take effect fifteen (15) days after is complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.

Approved.