Amending Section 4 Of Republic Act No. 6631 Entitled "An Act Granting Manila Jockey Club, Inc. A Franchise To Construct, Operate And Maintain A Race Track For Horse Racing In The City Of Manila Or In The Province Of Bulacan" And For Other Purposes

EXECUTIVE ORDER NO. 89 December 16, 1986

AMENDING SECTION 4 OF REPUBLIC ACT NO. 6631 ENTITLED "AN ACT GRANTING MANILA JOCKEY CLUB, INC. A FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN A RACE TRACK FOR HORSE RACING IN THE CITY OF MANILA OR IN THE PROVINCE OF BULACAN" AND FOR OTHER PURPOSES

WHEREAS, pursuant to the Charter of the Manila Jockey Club, Inc., receipts from betting corresponding to the fractions of less than ten (10) centavos, commonly known as "breakage", shall be eliminated from the dividend paid to the winning tickets and allocated to certain named beneficiaries;

WHEREAS, the Philippine Racing Commission needs additional funding for its operations and activities is connection with horse racing, as well as the horse-breeding activities of its National Stud Farm;

NOW, THEREFORE, I CORAZON C. AQUINO, President of the Republic of the Philippines, do hereby order:

Sec. 1. The last sentence of section 4 of Republic Act No. 6631 on the distribution of "breakage" is hereby amended to read as follows:

Sec. 4. ....

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Summary of Executive Order No. 89

Amending the Distribution of "Breakage" from Horse Race Betting
- Breakage refers to the receipts from betting corresponding to fractions of less than 10 centavos, eliminated from dividends paid to winning tickets. (Whereas clause)

Allocation of Breakage (Section 1):
- 25% to provincial or city hospitals where the race track is located.
- 25% for rehabilitation of drug addicts as provided in Republic Act No. 6425, as amended.
- 50% for the benefit of the Philippine Racing Commission, subject to the following conditions:
    - Funds shall be used exclusively for payment of additional prizes for races sponsored by the Philippine Racing Commission.
    - Funds shall be used for necessary capital outlays and other expenses related to horse-breeding activities of the National Stud Farm under the Philippine Racing Commission.

Transfer of Accumulated Breakage Funds (Section 2):
- All cash balances and accumulated amounts corresponding to the share of the Philippine Amateur Athletic Federation/Ministry of Youth and Sports Development, pursuant to Republic Act No. 6631, not remitted by the Manila Jockey Club, Inc., are hereby transferred to the Philippine Racing Commission.
- The transferred funds shall be constituted into a TRUST FUND to be used exclusively for:
    - Payment of additional prizes for races sponsored by the Philippine Racing Commission.
    - Necessary capital outlays and other expenses related to horse-breeding activities of the National Stud Farm.

Repealing Clause (Section 3):
- All laws, orders, issuances, rules, and regulations or parts thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.

Effectivity (Section 4):
- This Executive Order shall take effect immediately.