CREATING THE PHILIPPINE RACING COMMISSION

WHEREAS, horse racing should be given the impetus for
development so as to fully take advantage of its revenue-earning and
employment-giving aspects;

WHEREAS, the continued growth of horse racing will
inevitably result in the development of related industries which at
present are nonexistent and/or not fully exploited;

WHEREAS, it is necessary to restore integrity to the sport
to make it compatible with the ideals of sports development under the
New Society;

WHEREAS, horse racing as one of the oldest and universally
popular diversions of man has become highly specialized and
sophisticated so as to necessitate more attention of the Government; and

WHEREAS, it is imperative that a specialized body be
created which shall have a thorough and closer supervision and control
of all aspects of the sport in order to insure public benefit;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081,dated September2l, 1972, as amended by
Proclamation No. 1104, dated January 17, 1973, and General Order No. 1,
dated September 22, 1972, as amended, in order to effect the desired
and necessary changes and reforms in the social and economic structure
of our society, do hereby order and decree and make as part of the law
of the land the following:

SECTION 1. Declaration of Policy. — It is the
declared policy to promote and direct the accelerated development and
continued growth of horse racing nut only in pursuance of the sports
development program but also in order to insure the full exploitation of
the sport as a source of revenue and employment.

SEC. 2. Creation of the Philippine Racing Commission.
— For the purpose of carrying out the above declared policy, there is
hereby created a Philippine Racing Commission, hereinafter referred to
as the Commission, which shall be directly under the administrative
supervision of the Office of the President of the Philippines.

SEC. 3. Aims and Objectives. — The Commission shall
have the following aims and objectives:

1. To promote, insure and maintain efficient and unbiased
   operation of racing, exclusive of the supervision of betting therein;
2. To raise public confidence in the sport and to
   minimize infraction of the rules of racing; and
3. To improve the breed of Philippine horses and to prevent
   illegal importation of racehorses.

SEC. 4. Membership of the Commission. — The
Commission shall be composed of a chairman and four members to be
appointed by the President of the Philippines, upon the recommendation
of the Metropolitan Association of Race Horse Owners, Inc.

SEC. 5. Term of Office. — The term of office of
the commissioners shall be four (4) years: Provided, That no
vacancy shall be filled except for the unexpired portion of any term: And
provided, further, That any member of the Commission whose term of
office has expired shall remain in office until his successor shall
have been duly appointed and qualified. The Chairman and members of the
Commission may be suspended or removed by the President of the
Philippines.

SEC. 6. Meetings and Quorum. — The Commission
shall meet regularly once a week and as often as the exigencies of the
service may demand, upon the call of the Chairman or upon the request of
two (2) members of the Commission. The vote of at least three (3)
members shall be necessary for the adoption of any rule, resolution or
decision of the Commission.

SEC. 7. Allowances and Per Diems. — The Chairman
of the Commission shall receive a monthly commutable allowance of one
thousand pesos (P1,000) and a per diem not to exceed three hundred pesos
(P300) for each meeting actually attended by him: Provided,
That such allowance and per diems shall not exceed two thousand two
hundred pesos (P2,200) during any one (1) month.

The other members of the Commission shall receive a monthly
commutable allowance of eight hundred pesos (P800) and a per diem not to
exceed two hundred pesos (P200) for each meeting actually attended by
them: Provided, That such allowance and per diems shall not
exceed one thousand six hundred pesos (P1,600) during any one (1) month
for each member.

SEC. 8. Jurisdiction, Powers and Functions. —
Generally, the Commission shall have exclusive jurisdiction and control
over every aspect of the conduct of horse racing, including the framing
and scheduling of races, the construction; and safety of racetracks, the
allocation of prizes, and the security of racing.

The functions of the Games and Amusements Board with respect
to horse racing, except those related to the supervision and regulation
of getting in horse racing as provided for in Sections 6, 11, 15, 18,
and 24 of Republic Act No. 309, as amended, are hereby transferred to
the Commission.

The Games and Amusements Board shall continue to
supervise jai alai, boxing and wrestling activities as provided in
existing applicable laws.

SEC. 9. Specific Powers. — Specifically, the
Commission shall have the power:

1. To enforce all laws, decrees and executive orders relating
   to horse racing that are not expressly or impliedly repealed or
   modified by this Decree, including all such existing rules and
   regulations until otherwise modified or amended by the Commission;
2. To prescribe additional rules and regulations not otherwise
   inconsistent with this Decree;
3. To register racehorses, horse owners and associations or
   federations thereof; and to regulate the construction of racetracks and
   to grant permit for the holding of races;
4. To issue, suspend or revoke permits and licenses and to
   impose or collect fees for the issuance of such licenses and permits to
   persons required to obtain the same;
5. To review, modify, approve or disapprove the rules and
   regulations issued by any person or entity concerning the conduct of
   horse races held by them;
6. To supervise all such race meetings to assure integrity at
   all times. It can order the suspension of any racing event in case of
   violation of any law, ordinance or rules and regulations;
7. To prohibit the use of improper devices, drugs, stimulants
   or other means to enhance or diminish the speed of horses or materially
   harm their condition;
8. To approve the annual budget of the Commission and such
   supplemental budgets as may be necessary;
9. To appoint all personnel, including an Executive Director
   of the Commission as it may deem necessary in the exercise and
   performance of its powers and duties; and
10. To enter into contracts involving obligations chargeable
    to or against the funds of the Commission.

SEC. 10. Other Powers and Duties. —

1. The Commission may impose fines, penalties and
   forfeitures to erring parties under the rules and regulations of the
   Commission, which fines, penalties and forfeitures shall accrue to the
   funds of the Commission;
2. The Commission may, in its discretion or upon petition of
   any interested party, after notice and hearing, modify, suspend or
   revoke any permit or license for failure to comply with and/or for
   violation of any provision of law or any order, rules or regulations
   issued thereunder: Provided, That the Commission may for good
   cause and without notice and hearing, order the temporary suspension of
   such permit/license whenever such step, in the judgment of the
   Commission, shall be necessary and for the best interest of racing;
3. Except in cases where summary actions are taken, in the
   settlement of dispute and other problems connected with the conduct of
   horse racing, the Commission shall act as a body and all hearings and
   investigations before it shall be governed by the rules of procedures as
   may be adopted by it: Provided, That orders, ruling and
   decisions may be appealed to the President of the Philippines within
   seventy-two (72) hours from receipt of such orders, rulings and
   decisions;
4. For the purpose of carrying out the provision of this
   Decree, the Commission summon parties, issue subpoena or require the
   production of such books, papers, contracts, records, or statement of
   accounts as may be material to a just determination of any matter under
   investigation. The Commission may designate any of its members or
   officers to conduct hearings and investigations on any matter pending
   before it; and
5. The Commission shall perform such other duties and exercise all
   other powers incidental or necessary to the accomplishment of the aims
   and objectives of the Commission.

SEC. 11. Funding. — In order to provide necessary
funds to cover the expenses of the Commission and such other purposes
authorized under this Decree, one per centum (1%) of the gross
receipts derived from the total sale of tickets for daily double,
llave forecast, jackpot and other similar events is hereby
constituted as a special fund to be used by the Commission:
Provided, however, That the one per centum (1%) of the
gross receipts derived from the total sale of tickets for pari-mutuel
races shall continue to be retained as a special fund for the use of
the Games and Amusements Board: Provided, further, That to
promote clean and honest horse racing, licensed jockeys or trainers who
are suspended by the Commission for violation of existing rules on horse
racing shall be temporarily suspended from all benefits other than
medical and hospitalization expenses during the period of suspension.

SEC. 12. Audit. — The
Commission on Audit shall appoint a representative who shall be the
Auditor or the Commission and the necessary personnel to assist said
representative in the performance of his duties.

SEC. 13. Applicability of the Civil Service Law and
Exemption from WAPCO Coverage. — All personnel of the Commission are
subject to the provisions of the Civil Service Law, rules and
regulations. However, the regular professional and technical personnel
are exempt from the coverage of the Wage and Position Classification
Office.

SEC. 14. Supplies and Services Other than Personnel.
— All purchase of supplies or contracts for services, except for
personal services, entered into by the Commission shall be done through
competitive public bidding; Provided, That bidding shall not be
required when (1) an emergency, as certified by the Chairman, required
immediate delivery of the supplies or performance of the services, and
(2) the aggregate amount involved in any one purchase of supplies or
procurement of services does not exceed ten thousand pesos (P10,000), in
which case, such purchase or procurement may be made in the usual
course of business: Provided, further, That the Commission’s
emergency purchase of supplies and services shall not exceed the amount
of fifty thousand pesos (P50,000) for any one (1) month; Provided,
finally, That in comparing bids and in making awards, the
Commission shall consider such financial responsibility, skill,
experience, integrity, and ability to furnish repairs and maintenance
services; the time of delivery or performance offered; and the bidder’s
compliance with the specifications desired.

SEC. 15. Transitory Provision. — Pending the
organization of the Commission, the Games and Amusements Board shall
continue to exercise the duties and functions transferred to the
Commission. The personnel of the Games and Amusements Board whose
functions and duties are transferred to the Commission may be retained
in the Board; but those not so retained shall be transferred to the
Commission, unless the Commission determines otherwise. Those not
retained in the Board nor transferred to the Commission shall be
considered separated from the service: Provided, That the
separated personnel who are entitled to retire under existing retirement
laws shall be so retired: Provided, further, That those who
shall not be retired under existing retirement laws shall be entitled to
and paid a gratuity equivalent to one (1) month salary for every year
of service in the Government on the basis of the highest salary received
by them, subject to availability of funds.

The Commission is hereby authorized to reorganize the National
Stud Farm and such reorganization shall be submitted to the President
for approval within six (6) months from the promulgation of this Decree.
Pending the reorganization, the Farm shall be under the supervision and
control of the Commission.

SEC. 16. Repealing Clause.
— The provisions of Republic Act No. 309, as amended, and all other
acts, decrees, executive orders, rules and regulations or parts thereof
which are inconsistent with the provisions of this Decree are hereby
either repealed or modified accordingly.

SEC. 17. Separability Clause. — The provisions of
this Decree are hereby declared to be separable and in the event any
one or more of such provisions are held unconstitutional, the validity
of other provisions shall not be affected.

SEC. 18. Effectivity. — This Decree shall take
effect immediately.

Done in the City of Manila, this 20th day of March, in the
year of Our Lord, nineteen hundred and seventy-four.