Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

HOUSE BILLNO._ 2.188

Introduced by Representatives Mark Aeron H. Sambar and Emmanuel D. Pacquiao

AN ACT AMENDING REPUBLIC ACT NO. 6847, OTHERWISE KNOWN AS
“THE PHILIPPINE SPORTS COMMISSION ACT”

EXPLANATORY NOTE

On 24 January 24 1990, Congress approved Republic Act No. 6847, or the law creating the
Philippine Sports Commission (PSC). Today, more than twenty years or two decades have passed
since said landmark legislation was passed, it is high time we make an assessment of the
performance of this sports agency and further enhance its capabilities and interventions, in the
highest interest of Philippine sports.

Considering that during the past two decades, several Executive Issuances and other laws
‘on physical fitness and sports development have been issued and approved, it becomes
imperative that we also take a closer look and update all these in relation to the mandate of the
PSC,

With respect to the international arena, there are new programs being implemented by the
International Olympic Committee and that there are new international policies, rules and
regulations directly affecting our national sports program in that we need to likewise update our
own national laws to adapt to these new developments in the field of sports. For example,
whereas before there was a clear distinction between amateur and professional athletes but today,
such distinction no longer seems to exist.

In the PSC charter, there seems to be a gray area particularly on the computation of the
actual share of the Commission from other government agencies or corporations, particularly those
funds coming from the Philippine Amusement and Gaming Corporation (PAGCOR), the Philippine
Charity Sweepstakes Office (PCSO), and the Philippine Postal Service Office (PPSO), among
others,

As an oversight function, it is the duty of Congress to, once and for all, settle these legal
ambiguities and amend the concemed provisions with the end in view of providing a bigger funding
allocation to our country's integrated national sports program to ensure a brighter future for
Philippine sports to benefit future generations.

Time and again we have witnessed the need for continuity and professionalization in the
TManagement of a long-term integrated national sports program synchronized for both the local or


community-based physical fitness and sports development and that of the international programs
set by the Intemational Olympic Committee.

There is therefore a need to fix the term of office of its Chairman and its four (4)
Commissioners, redefine its vision and mission, if necessary, and ensure the proper coordination
and linkages with all concemed stakeholders, especially with all local government units (LGUs) and
the members of the National Physical Fitness and Sports Development Council (NPFSDC),
particularly with the Philippine Olympic Committee (POC), National Sports Associations (NSAs),
including the Athletes and Coaches’ Alliance of the Philippines.

For a long time, our LGUs have been longing for a program that will institutionalize and
guarantee continuity as they each implement their respective local sports programs. Under the
1991 Local Government Code, the LGUs are mandated to conduct an annual Palarong barangay,
Palarong pambayan, Palarong panlungsod and Palarong panlalawigan.

Unfortunately, there is no national program that will provide the venue and impetus where
the outstanding local athletes can compete amongst themselves. Such national competition, which
should be institutionalized, can be a rich and potent source of new raw talents for future sports
heroes badly needed by our country.

We therefore need to ensure that there is a bright future that awaits their local athletes
whom the PSC and NSAs can identify, recruit, train and provide with top caliber coaches, supply
them with the proper training equipment, make available adequate resources, grant them the due
fecognition, benefits and incentives, and give them the necessary exposure and opportunities in
national and international sports competitions.

On the other side of the coin, we need to ensure that the national athletes and coaches will
have proper representation in the formulation of national policies, programs and projects intended
for them by the Commission in order to make it more effective, responsive and successful. The
PBA partylist will be the voice of the athletes in the lawmaking arena of the Philippines. It is about
time that their voices are indeed heard, protected, respected and adopted.

| We, therefore, strongly urge the passage of this vital and fundamental legislation amending
certain provisions of R.A. 6847, otherwise known as the “Philippine Sports Commission Act of
1990" if only to clearly provide the right path and direction for Philippine sports.

Mabuhay ang ating mga Atletang Pilipino!



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

Fifteenth Congress
First Regular Session

House Bill No.__ 2188

Introduced by Representatives Mark Aeron H. Sambar and Emmanuel D. Pacquiao

AN ACT AMENDING REPUBLIC ACT NO. 6847, OTHERWISE KNOWN AS
“THE PHILIPPINE SPORTS COMMISSION ACT”

Be it enacted by the Senate and the House of Representatives of the Philippines:
in Congress assembled:
SECTION 14. Section 2 of Republic Act No. 6847, otherwise known as the
“Philippine Sports Commission Act” is hereby amended to read as follows:

“Sec. 2. Declaration of Policy. It is the policy of the state to promote THE
UNESCO’S POLICY OF “SPORTS FOR ALL” [ physical education,] encourage
and sustain the development of PHYSICAL FITNESS AND sports in the country
to foster [ physical fitness, ] self discipline, teamwork and excellence NOT ONLY
for the development of a healthy and alert citizenry ["] BUT ALSO FOR THE
PRIDE AND HONOR OF THE COUNTRY, AND TO PROMOTE PHYSICAL
EDUCATION, LEAGUE COMPETITIONS, AND AMATEUR SPORTS,
INCLUDING TRAINING FOR INTERNATIONAL COMPETITIONS,

AS MANDATED UNDER ARTICLE XIV, SECTION 19 (1) OF THE
1987 PHILIPPINE CONSTITUTION.”

Sec, 2. Section 4 of the same Act is hereby amended to read as follows:

“Sec 4. Status of the Commission. - The Commission shall have the same status as
that of a governmental regulatory national agency attached to the Office of the

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President with the Chairman thereof being of the same level as a department
undersecretary AND CONCURRENTLY ACT AS THE PRESIDENTIAL
ADVISER ON SPORTS, and the Commissioners that of department assistant
secretaries.”

Sec. 3. Section 5 of the same Act is hereby amended to read as follows:

“Sec. 5. Nature of the Commission. - The Commission shall exercise corporate powers. It
shall have a seal, may sue and be sued, and shall be the sole policy-making and
coordinating body of all PHYSICAL FITNESS, amateur AND IOC-SANCTIONED sports
development programs and institutions in the Philippines, IN COORDINATION WITH THE.

PHILIPPINE OLYMPIC COMMITTEE (POC): Provided, That in the case of the

(a) school sports programs, PHYSICAL EDUCATION, AND SCHOOL-BASED
SPORTS ACTIVITIES, the same shall be formulated and implemented by the
Department of Education (DEPED), [Culture and Sports (DECS)], AND THE
COMMISSION ON HIGHER EDUCATION (CHED) , BY VIRTUE OF ARTICLE XIV ,
SECTION 19 (2) OF THE 1987 PHILIPPINE CONSTITUTION THAT “ ALL
EDUCATION INSTITUTIONS SHALL UNDERTAKE REGULAR SPORTS
ACTIVITIES THROUGHOUT THE COUNTRY IN COOPERATION WITH ATHLETIC
CLUBS AND OTHER SECTORS;

(b) GRASS-ROOTS OR COMMUNITY-BASED PHYSICAL FITNESS AND
SPORTS DEVELOPMENT PROGRAM, THE SAME SHALL BE FORMULATED
AND IMPLEMENTED BY THE LOCAL GOVERNMENT UNITS (LGUS) IN THEIR
RESPECTIVE JURISDICTIONS with the assistance of the Commission, IN
COORDINATION WITH THE DEPARTMENT OF THE INTERIOR AND LOCAL
GOVERNMENT (DILG) within the framework of the national PHYSICAL FITNESS
AND sports development POLICY AND program”. AND

{C) ELITE SPORTS PROGRAM FOR INTERNATIONAL COMPETITIONS, THE
SAME SHALL BE FORMULATED AND IMPLEMENTED IN CLOSE
COORDINATION WITH THE NATIONAL SPORTS ASSOCIATIONS (NSAs) AND
THE ATHLETES AND COACHES ALLIANCE OF THE PHILIPPINES (ACAP);

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Sec. 4. Section 6 of the same Act is hereby amended to read as follows:
“Sec, 6. Objectives of the Commission. - The objectives of the Commission are:

(i) To provide the leadership, formulate the policies and set the priorities and
direction of all national PHYSICAL FITNESS and [amateur] sports promotion and
development, particularly giving emphasis on grass-roots participation;

(ii) To encourage wide participation of all sectors, government and private, in

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10 PHYSICAL FITNESS AND [amateur] sports promotion and development; and

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12 (iii) To supplement government appropriations for PHYSICAL FITNESS _AND
13 sports promotion and development. “

14

15 SEC. 5. Section 7 of the same Act is hereby amended to read as follows:

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17 “Sec. 7. Functions of the Commission - The Commission shall have the following
18 functions:

19

20 (a) Plan, implement and oversee an integrated NATIONAL PHYSICAL
21 FITNESS, AND [amateur] sports promotion and development program for the
22 country, including the program [for the Decade of Physical Fitness and Sports:
23 1990-2000, pursuant to Presidential Proclamation No. 406] in coordination with
24 various sectors involved in sports, including, among others, the Philippine Olympic
25 Committee, the National Sports Associations, PHILIPPINE SPORTS
26 ASSOCIATION FOR THE DIFFERENTLY-ABLED (PHILSPADA), the public and
27 private schools, government corporations and entities, the local governments, the
28 Armed Forces of the Philippines, and other sports organizations AND
29 ASSOCIATIONS and private corporations;

30

31 (b) XXXXXXXXX

32

33 (0) XXXXXXXXX

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(d) XXXXXX
(@)XXXXXXXXX

()XXXXXXXX

(g) Develop and promulgate rules and regulations to implement this Act,
including rules to delineate and define areas of responsibilities of all sectors
involved in PHYSICAL FITNESS AND sports promotion and development,
respecting the individual set-up, priorities, structure and competence of the different
government and private institutions

(hy XXXXXXX

@ Provide such incentives, recognitions and awards to deserving
NATIONAL SPORTS associations (NSAs), athletes, referees, game officials,
coaches, trainers and other persons or entities involved in or supporting sports
development [as may be permissible under the rules of amateurism];

(j) Recommend and propose to the DEPED, [ Department of Education,
Culture and Sports,] CHED, Department of THE INTERIOR AND Local
Government (DILG), LGUs, and ALL other CONCERNED government
agencies and Instrumentalities having sports programs, to incorporate in their
respective annual budgets, a separate and specific budget for PHYSICAL
FITNESS AND sports promotion and development;

(k) xxx
(I) xxx

(m) Encourage, promote and sustain the creation and establishment of
egional, provincial, CITY, municipal and barangay {or school district] PHYSICAL

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FITNESS AND sports [and] development councils (PFSDCs), THE
COMPOSITION OF WHICH IS ENUMERATED UNDER EXECUTIVE ORDER

NO. 64, AS AMENDED [composed of officials of the Department of Education,
Culture and Sports, Department of Local Government, local government
Officials, and representatives of the private sector,] which shall initiate , conduct
and coordinate PHYSICAL FITNESS AND sports activities in their respective
jurisdiction, AND ACT AS THE NATIONAL SECRETARIAT OF THE NPFSDC
AND PROVIDE AN ANNUAL BUDGET FOR THIS PURPOSE; [ and ]

(m-1) DEVELOP AND ENSURE THE IMPLEMENTATION OF A MASTER
PLAN FOR PHYSICAL FITNESS AND SPORTS DEVELOPMENT;

(m-2) ENSURE THE CONDUCT OF AN ANNUAL REGIONAL ANDIOR

CLUSTER SPORTS MEETS LEADING TO A NATIONAL SPORTS
COMPETITION WHICH SHALL SERVE AS THE CULMINATING EVENT
OF THE ANNUAL PALARONG BARANGAY, PALARONG BAYAN,
PALARONG PANLUNSOD, AND PALARONG PANLALAWIGAN, AS
MANDATED UNDER THE 1991 LOCAL GOVERNMENT CODE, FOR
THE PURPOSE OF ESTABLISHING A REGULAR TALENT
IDENTIFICATION AND RECRUITMENT PROGRAM, IN COORDINATION
WITH THE LGUs, DepEd, DILG, POC, NSA’s, ACAP AND OTHER
STAKEHOLDERS. PROVIDED, THAT NATIONAL ATHLETES WHO
ARE MEMBERS OF THE COMMISSION'S NATIONAL TRAINING POOL
SHALL BE DISQUALIFIED FROM PARTICIPATING IN THE SAID
COMPETITIONS TO ENSURE A LEVEL PLAYING FIELD FOR LOCAL
ATHLETES;

(m-3) ENSURE THE INSTITUTIONALIZATION OF THE PHILIPPINE
SPORTS INSTITUTE OR ACADEMY AND A SPORTS LIBRARY AND

MUSEUM; AND

(m-4) DISSEMINATE THE COMMISSION’S POLICIES, GUIDELINES,
RULES AND REGULATIONS TO ALL STAKEHOLDERS TO ENSURE

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ITS IMPLEMENTATION BY ALL CONCERNED AGENCIES AND LGUs;
AND

(n) xxx
Sec. 6. Section 8 of the same Act is hereby amended to read as follows:

Sec. 8. Composition of the Commission. — The Commission shall be composed of a
[Chairman] CHAIRPERSON and four (4) Commissioners all of whom shall be appointed by
the President. THE PHILIPPINE OLYMPIC COMMITTEE, IN CONSULTATION WITH
MEMBERS OF THE NATIONAL PHYSICAL FITNESS AND SPORTS DEVELOPMENT
COUNCIL (NPFSDC), MAY SUBMIT A SHORT LIST OF RECOMMENDEES TO THE
PRESIDENT.

SEC. 7. Anew section between Sections 9 and 10 of the same Act is hereby inserted to
be denominated as Section 9-A to read as follows:

“Sec. 9-A, TERM OF OFFICE OF THE CHAIRPERSON AND COMMISSIONERS - THE
CHAIRPERSON AND THE FOUR (4) COMMISSIONERS SHALL HOLD OFFICE FOR A
TERM OF FOUR (4) YEARS AND MAY BE REAPPOINTED FOR A SECOND TERM:
PROVIDED, THAT NO PERSON MAY SERVE FOR MORE THAN TWO (2)
CONSECUTIVE. TERMS.

UPON THE APPROVAL OF THIS ACT, THE CHAIRPERSON SHALL BE APPOINTED
FOR A TERM OF SIX (6) YEARS. THE COMMISSIONERS APPOINTED UNDER THIS
ACT SHALL HAVE STAGGERED TERMS TO ENSURE CONTINUITY OF ITS
PROGRAMS AND ACTIVITIES, THE FIRST TWO (2) OF WHOM SHALL SERVE FOR A
TERM OF SIX (6) YEARS AND THE OTHER TWO (2) FOR A TERM OF THREE (3)
YEARS. THEREAFTER, THE NEXT COMMISSIONERS TO BE APPOINTED TO THE
POSITION SHALL HAVE A TERM OF THREE (3) YEARS.

IN CASE OF A VACANCY, BY DEATH, RESIGNATION OR ANY DISABILITY WHICH
WOULD RENDER A COMMISSIONER INEFFECTIVE TO DISCHARGE HIS OR HER

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FUNCTIONS, THE NEWLY APPOINTED COMMISSIONER SHALL SERVE ONLY THE
UNEXPIRED PORTION OF THE TERM UNLESS REAPPOINTED.”

Sec. 8, Section 9 of the same Act is hereby amended to read as follows:

“Sec, 9, Qualifications of the [Chairman] CHAIRPERSON and the Commissioners. - The
[Chairman] CHAIRPERSON and the Commissioners of the Commission must be citizens of
the Philippines, publicly-recognized personalities in the field of sports, at least thirty (30)
years of age, MUST BE ABLE TO READ AND WRITE and of good moral
character. PROVIDED, THAT THE CHAIRPERSON MUST HAVE MANAGERIAL AND
ADMINISTRATIVE COMPETENCE.” :

Sec. 9. Anew section between Sections 10 and 11 of the same Act is hereby inserted to
be denominated as Section 10-A to read as follows:

“Sec. 10-A. THE CHAIRPERSON AND THE COMMISSIONERS. - THE CHAIRPERSON
SHALL BE THE CHIEF EXECUTIVE OFFICER OF THE COMMISSION. HE/SHE SHALL
BE PRIMARILY RESPONSIBLE FOR DEVELOPING, PROMULGATING AND
IMPLEMENTING POLICIES, RULES AND REGULATIONS AS ARE NECESSARY AND
PROPER FOR THE ACCOMPLISHMENT OF THE PURPOSES AND OBJECTIVES OF
THE COMMISSION.

THE CHAIRPERSON, WITH THE ASSISTANCE OF THE COMMISSIONERS, SHALL
DETERMINE AND IMPLEMENT THE ORGANIZATIONAL STRUCTURE NECESSARY
TO EFFICIENTLY AND EFFECTIVELY CARRY OUT THE FUNCTIONS OF THE
COMMISSION.

THE CHAIRPERSON SHALL DESIGNATE EACH COMMISSIONER TO SUPERVISE
THE FOLLOWING AREAS OF MANAGEMENT: FINANCE, ADMINISTRATION,
OPERATIONS AND INTERNATIONAL AFFAIRS. HE SHALL LIKEWISE APPOINT THE
OFFICERS AND OTHER PERSONNEL OF THE COMMISSION AND FIX THEIR
COMPENSATION SUBJECT TO EXISTING LAWS, RULES AND REGULATIONS AND
MAY DELEGATE AUTHORITY TO OFFICERS AND EMPLOYEES OF THE

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COMMISSION FOR THE PERFORMANCE OF ANY FUNCTION.”
Sec. 10. Section 11 of the same Act is hereby amended to read as follows:
“Sec. 11. Powers of the Commission. - The Commission has the power to do all acts

and things necessary do be done for or in connection with the performance of its functions,

including:

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[ (a) 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;

(d)] (a) 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;

(b) XXXXXXX

()XXXXXXXX

(4) XXXXXXX

(@)XXXXXXXX

(f) XXXXXXXX

(g) To assist and support national SPORTS associations in the implementation of
Section 11 of this Act;

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(h) To confer, extend and grant awards, benefits and privileges to athletes,
INCLUDING THOSE DIFFERENTLY-ABLED ATHLETES, coaches and officials for
‘outstanding performances in national and intemational competitions;

(i) To confer, extend and grant FINANCIAL support or OTHER FORMS OF
assistance ONLY to NATIONAL sports associations DULY REGISTERED WITH
THE SECURITIES AND EXCHANGE COMMISSION (SEC) which are in good
standing with the Commission AND HAVE DULY SETTLED AND LIQUIDATED
PREVIOUS FINANCIAL ASSISTANCE GIVEN TO THEM BY THE COMMISSION
UNDER THIS ACT;

(i-1) TO CONFER, EXTEND, AND GRANT FINANCIAL SUPPORT OR
OTHER FORMS OF ASSISTANCE TO OTHER DESERVING SPORTS
ASSOCIATIONS AND ORGANIZATIONS, INCLUDING ATHLETES,
COACHES AND SPORTS OFFICIALS IN ACCORDANCE WITH THE
GUIDELINES OF THE COMMISSION;

(i) XXXXXXXXXX

(Kk) XXXXXXXX

(I) To ensure the implementation by various government departments and agencies
of their PHYSICAL FITNESS AND sports promotion and development programs as
indicated in their respective annual budgets;

(m) To impose sanctions upon any national sport association, institution, body,
entity, team, COACH, TRAINER, athlete and sports official, for violation of its
policies, rules and regulations; PROVIDED, THAT ANY SUCH SANCTIONS DO
NOT RUN CONTRARY TO THE OLYMPIC PRINCIPLE OF GOVERNMENT

INTERVENTION IN SPORTS; and

(n) XXXXXXXXXX

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Sec. 11. Section 13 of the same Act is hereby amended to read as follows:

“Sec, 13, National Sports Associations. — National sports associations, organized
‘as the governing bodies for their respective sports in the Philippines AND
RECOGNIZED AS SUCH BY THE POC, DULY REGISTERED WITH THE SEC
and [/or] affiliated with their respective intemational federations [which are ]
ANDIOR recognized by the International Olympic Committee are HEREBY
recognized and ACCREDITED as such by the Commission.

The national sports association recognized AND ACCREDITED 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.] OF RA 6847.

Each national sports association shall, by its Constitution and by-laws, determine
its organization and membership: Provided, however, 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 Commission recognizes the following functions, powers, duties and
responsibilities of the various national sports associations:

(a) To REGISTER WITH THE SEC IN ACCORDANCE WITH
APPLICABLE LAWS OF THE REPUBLIC OF THE PHILIPPINES
AND adopt a Constitution and By-Laws not inconsistent with the
RULES AND REGULATIONS OF THE COMMISSION AND/OR THE
Constitution and By -Laws of the Philippine Olympic Committee;

(a-1) TO REGISTER WITH THE COMMISSION FOR

ACCREDITATION AND RECOGNITION AS A NATIONAL SPORTS
ASSOCIATION;

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{a-2) TO LIQUIDATE FUNDS AND OTHER FORMS OF
ASSISTANCE GRANTED BY THE COMMISSION UNDER THIS
ACT WITHIN THE PRESCRIBED PERIOD TO BE DETERMINED
BY THE COMMISSION BUT IN NO CASE EXCEEDING NINETY
(90) DAYS. NON-LIQUIDATION OF SUCH. ASSISTANCE FROM
THE COMMISSION SHALL DISQUALIFY THE NSA FROM
RECEIVING OR QUALIFYING FOR A NEW ROUND OF
FINANCIAL OR OTHER FORM OF ASSISTANCE FROM THE
COMMISSION. ALL UNLIQUIDATED FINANCIAL ASSISTANCE
RECEIVED PRIOR TO THE ENACTMENT OF THIS LAW SHALL
STILL BE SUBJECT TO EXISTING ACCOUNTING AND AUDITING
RULES AND PROCEDURES AND THE COMMISSION'S RULES
AND REGULATIONS;

(b)XXXXXX

(c) XXXXXXXX

(A) XXXXXXX

()XXXXXXX

() XXXXXXXX

(g) To decide all questions on the [amateur] status and discipline of the
athletes and officials connected with the associations as well as the
members thereof and all disputes between members, IN
ACCORDANCE WITH THE CONSTITUTION AND BY-LAWS OF THE
PHILIPPINE OLYMPIC COMMITTEE;

(h) XXXXXXX

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(j) 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 Philippine Olympic Committee AND
THE COMMISSION;

(k) To qualify and license COACHES, referees, umpires and other
game officials who shall {officiate] PARTICIPATE in competitions in
their respective sports; and“

(WXXXXXXXXXXX
Sec, 12. Section 14 of the same Act is hereby amended to read as follows:

“Sec. 14. Executive Director. — There shall be an Executive Director who shall be
appointed or designated as such by the CHAIRPERSON [Chairman, preferably from
among the four (4) Commissioners,] and shall ASSIST THE CHAIRPERSON IN THE direct
[and supervise] SUPERVISION OF the day-to-day operations of the Commission. The
Executive Director shall BE A CAREER OFFICER [ have supervision and control over the
bureau on administrative services headed by a Deputy Executive Director and the bureau
‘on coordinating secretariat and support services, offices and sections which shall likewise
be headed by a Deputy Executive Director. The Deputy Executive Directors shall be
appointed by the Chairman J.”

Sec. 13. Section 15 of the same Act is hereby amended to read as follows:

“Sec. 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 citizen of the Republic of the Philippines, at least twenty-five (25) years of
age, of good moral character, a college graduate and has at least [five (5)] THREE (3)
years EXECUTIVE AND MANAGEMENT experience [in sports administration]. *

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Sec. 14, Section 16 of the same Act is hereby amended to read as follows:

"Sec. 16. [Functions and Responsibilities of Officers and Staff . — The administrative
services bureau shall be primarily responsible for providing services related to financial
management, personnel, records, supplies and equipment, while the bureau on
coordinating secretariat and support services shall be primarily responsible for plans and
programs formulation, research, EDP and system management, public information and
production, transportation, communications and such other functions and responsibilities as
may be necessary and required by the Commission.] PHILIPPINE SPORTS
COMMISSION SECRETARIAT. - THE COMMISSION SHALL HAVE A SECRETARIAT
WHICH SHALL BE PRIMARILY RESPONSIBLE FOR PROVIDING THE SERVICES
NECESSARY TO IMPLEMENT THE DUTIES, POWERS AND FUNCTIONS OF THE
COMMISSION AS MANDATED UNDER THIS ACT.”

Sec. 15. Section 17 of the same Act is hereby amended to read as follows:

“Sec. 17. Appointment of Staff and Employees of the Commission. — The staff, officers
and employees of the Commission shall be appointed by the [Chairman] CHAIRPERSON
of the Commission.”

Sec. 16. Section 19 of Republic Act No. 6847 is hereby amended to read as follows:

Sec. 19. Tax Exemptions 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 intemational sports standard not available from local
manufacturers and only in such numbers as may be required in the development of various
sports and/or training of the national pool of athletes. The importation of sportswear,
equipment, supplies instruments and materials donated to the Philippine Olympic
Committee and, through the Commission, to the various national sports associations AND
THOSE MADE BY CORPORATIONS WHO HAVE SPONSORED FILIPINO NATIONAL
ATHLETES AND/IOR PARTICULAR SPORTS EVENTS, cerlified under oath by the

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Commission to be required and necessary for the development of sports in the country
shall also be exempt from the payment of customs duties, taxes and tariffs.

Sec. 17. Section 20 of the same Act is hereby amended to read as follows:

Sec. 20. Tax Deduction or Exemption of Donations and Contributions. — All donations and
contributions to the Commission in connection with its fund-raising projects and its
continuing PHYSICAL FITNESS AND sports development programs AND THOSE
FINANCIAL SPONSORSHIPS BY CORPORATIONS TO FILIPINO NATIONAL
ATHLETES ANDIOR PARTICULAR SPORTS EVENTS 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 Philippine Olympic Committee and/or 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.

Sec. 18. Section 21 of the same Act is hereby amended to read as follows:

“Sec. 21. Sports Delegations. — The Commission AND THE OFFICIAL DELEGATIONS
OF THE PHILIPPINE OLYMPIC COMMITTEE AND THE NATIONAL SPORTS
ASSOCIATIONS [and its delegation or representatives] 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.”

Sec. 19. A new section between Sections 23 and 24 of the same Act is hereby inserted
to be denominated as Section 23-A to read as follows:

“SEC, 23-A. RENTAL INCOME. - ALL RENTAL INCOME FROM THE USE OF SPORTS
EQUIPMENT AND FACILITIES OWNED AND OPERATED BY THE COMMISSION
SHALL BE REMITTED DIRECTLY TO THE COMMISSION TO FORM PART OF ITS
NATIONAL SPORTS DEVELOPMENT FUND AS PROVIDED FOR IN SECTION 26 of RA
6847.”

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Sec. 20. Section 24 of the same Act is hereby amended to read as follows:

“Sec. 24. Assistance by the Government Entities. — The Commission 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, INCLUDING THE
LOCAL GOVERNMENT UNITS, 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 PHYSICAL FITNESS AND sports development program. “

Sec. 21. Section 26 of Republic Act No. 6847 is hereby amended to read as follows:

“Sec. 26.Funding. — In order to provide the necessary funds required for the
organizational and initial calendar year of operational expenditures of the Commission, the
amount of Twenty-five million pesos (P25,000,000.00) from the National Treasury is hereby
appropriated: Provided, That operating expenses for the Commission itself shall not exceed
twenty percent (20%) of the annual appropriation and that at least eighty percent (80%) of
said annual appropriation and all of the national sports development funds, as hereinafter
provided, shall be disbursed for the national sports program, particularly in support of the
identification, recruitment and training of athletes in pre-regional, regional, national and
international competitions , including the implementation of the Decade of Physical Fitness
and Sports: 1990-2000 .

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 the country's participation at international sports competitions, such as, but not
limited to, the Olympic, Asian, and Southeast Asian Games, and all other international
competitions, sanctioned by the International Olympic Committee, and the International
Federations, thirty percent (30%) representing the charity fund and proceeds of six (6)
sweepstakes or LOTTO AND /OR OTHER lottery draws per annum OF THE PHILIPPINE
CHARITY SWEEPSTAKES OFFICE (PCSO), taxes on horse races [during special
holidays] FROM AT LEAST ONE (1) RACING DAY PER MONTH TO BE DETERMINED
BY THE PHILRACOM AND THE COMMISSION, five percent (5%) of the gross income of
the Philippine Amusement and Gaming Corporation (PAGCOR), TO BE COMPUTED

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AFTER THE FRANCHISE TAX SHALL HAVE BEEN DEDUCTED BUT PRIOR TO
DEDUCTING THE SHARE OF THE NATIONAL GOVERNMENT AND OTHER
AGENCIES AS PROVIDED BY LAW, the proceeds from the sale of stamps as hereinafter
provided, and three percent (3%) of all taxes collected on imported athletic equipment shall
be automatically remitted directly to the Commission BY SUCH CONCERNED AGENCIES:
and are hereby constituted as the National Sports Development Fund.

Further, the Philippine Postal Service Office is hereby authorized to print paper and gold
stamps which shall depict sports events and such other motif as the Philippine Postal

Service Office 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.

Sec. 22. Repealing Clause. — All laws, presidential decrees, executive orders, presidential
proclamations, rules and regulations or parts thereof inconsistent with this Act are hereby

repealed or modified accordingly.

Sec. 23. Separability Clause. — If any provision of this Act is declared unconstitutional, the
same shall not affect the validity and effectivity of other provisions hereof.

Sec. 24. Effectivity. — This Act shall take effect after fifteen (15) days following its approval
and publication in at least two (2) national newspapers of general circulation.

Approved.

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