Authorization and Management of Charity Horse Race Sweepstakes
- Authorizes holding charity horse race sweepstakes 2 to 4 times per year as an emergency measure.
- Requires at least two races in the Philippines featuring only horses that have not previously raced.
- Establishes the Philippine Charity Sweepstake Office to manage operations.
- Creates a Board of Trustees with five members: Secretary of Finance (ex-officio chairman), Secretary of Public Works and Communications, Commissioner of Health and Public Welfare, and two appointees by the Governor-General with Senate consent.
- The General Manager leads the office, assisted by personnel appointed by the Board.
- Employees cannot receive double compensation if employed by government; salary caps set for staff and General Manager.
- Board can appoint personnel without regard to Civil Service laws.
- Operational expenses are payable from receipts and must not exceed percentages specified in Section 4.
- Annual expense estimates must be submitted by the General Manager and approved by the Board.
Powers and Regulatory Functions of Board of Trustees
- Board sets regulations for sweepstakes, including number and price of tickets, allocation of free tickets, prize amounts, ticket sale closure dates, and scheduling and venue of races.
- Board may acquire property, enter contracts, and undertake necessary acts for enforcement.
Apportionment of Receipts from Ticket Sales
- From gross receipts, 75% allocated to prizes and management expenses; expenses limited to 14% of this 75%.
- Remaining 25% distributed at the Board’s discretion, guided by the Commissioner of Health and Public Welfare.
- Designated beneficiaries include:
- Philippine Islands Antituberculosis Society (minimum 30%)
- Philippine Amateur Athletic Federation (30% for first three years)
- Hospitals, charitable organizations, women’s clubs, boy scouts, veterans’ asylums, child welfare centers, and other charitable entities.
- Funds must be used exclusively for purposes authorized by the Board.
Capitalization and Financial Provisions
- Board to accumulate capital for the Philippine Charity Sweepstake Office from sweepstake receipts.
- Initial capital advance up to 200,000 pesos by the Insular Treasurer, to be repaid within two years with 5% interest.
Tax Exemption and Ticket Security
- Sweepstakes and ticket sales exempt from all taxes except a 2 centavo internal-revenue stamp per ticket.
- Tickets are government-printed securities; forgery or alteration punishable under the Revised Penal Code.
Transitional Provisions for Existing Sweepstakes
- The 1934 National Charity Sweepstakes and its allocation of proceeds to follow amended prior laws.
- Antituberculosis Society permitted to hold races as previously authorized for only one year.
Construction and Procurement Procedures
- For construction works costing over 300,000 pesos, the Board must hold competitive plan contests with prizes.
- Contracts for work over 3,000 pesos awarded to best bidder under Board conditions.
Reporting and Accountability
- Board must submit an annual detailed report every June to the Governor-General and Legislature.
Repeal of Inconsistent Laws
- Any laws or provisions inconsistent with this Act are repealed.
Effectivity
- The Act takes effect upon its approval.