AN ACT CREATING AND ESTABLISHING THE PHILIPPINE SPORTS COMMISSION

Case Overview and Summary

Title: The Philippine Sports Commission Act

Declaration of Policy (Section 2):
- Promote physical education and sports development in the country
- Foster physical fitness, self-discipline, teamwork, and excellence
- Establish a unified national sports promotion and development program

Creation and Status of the Philippine Sports Commission (Sections 3-5):
- A body corporate known as the Philippine Sports Commission is created
- It has the same status as a governmental regulatory national agency attached to the Office of the President
- It is the sole policy-making and coordinating body for amateur sports development programs in the Philippines

Objectives of the Commission (Section 6):
- Provide leadership, formulate policies, and set priorities for amateur sports promotion and development, emphasizing grassroots participation
- Encourage wide participation of all sectors in amateur sports promotion and development
- Supplement government appropriations for sports promotion and development

Functions of the Commission (Section 7):
- Plan, implement, and oversee an integrated amateur sports promotion and development program
- Establish and maintain linkages with international sports associations and organizations
- Plan and oversee a program to enable the Philippines to bid for and host the Olympic Games
- Establish, develop, and maintain fully-equipped sports facilities and complexes
- Rationalize and regulate the establishment of publicly-funded sports complexes
- Plan and formulate programs, and review or evaluate the organizational set-up and projects
- Develop and promulgate rules and regulations to implement the Act
- Assist in formulating an industry incentives program for the manufacture of sports equipment
- Provide incentives, recognition, and awards to deserving associations, athletes, and officials
- Recommend and propose sports promotion and development budgets to government agencies
- Conduct basic and applied research on sports development
- Conduct promotion and fund-raising campaigns
- Encourage and promote the creation of regional, provincial, municipal, and barangay sports councils
- Exercise other necessary acts in connection with the creation of the Commission

Composition and Qualifications of the Commission (Sections 8-10):
- The Commission is composed of a Chairman and four Commissioners appointed by the President
- The Chairman and Commissioners must be Filipino citizens, publicly-recognized personalities in sports, at least 30 years old, and of good moral character
- The Chairman receives an annual compensation and benefits provided for an undersecretary of a department, and the Commissioners receive that of assistant secretaries

Powers of the Commission (Section 11):
- Appoint officers and personnel, and fix their compensation
- Delegate authority for the performance of any function
- Enter into contracts
- Acquire, use, and control land, buildings, facilities, equipment, and rights required for its purposes
- Acquire, own, possess, and dispose of real or personal property
- Regulate the acquisition, procurement, distribution, and use of sportswear, equipment, and other sports necessities
- Assist and support national associations in implementing their functions
- Confer awards, benefits, and privileges to outstanding athletes, coaches, and officials
- Confer support or assistance to sports associations in good standing
- Exercise supervisory and visitorial powers over national sports associations receiving financial assistance
- Accept donations, gifts, bequests, and grants
- Ensure the implementation of sports promotion and development programs by government agencies
- Impose sanctions for violations of its policies, rules, and regulations
- Perform other necessary acts incident to its creation

Recognition of the Philippine Olympic Committee and National Sports Associations (Sections 12-13):
- The Philippine Olympic Committee is recognized as the National Olympic Committee for the Philippines
- National sports associations organized for their respective sports and affiliated with international federations recognized by the International Olympic Committee are recognized by the Commission
- National sports associations have exclusive technical control over the promotion and development of their respective sports, subject to the Commission's supervisory and visitorial powers
- No team, school, club, organization, or entity shall be admitted as a voting member of a national sports association unless 60% of its athletes are Filipino citizens
- Functions, powers, duties, and responsibilities of national sports associations are outlined (Section 13)

Executive Director and Deputies (Sections 14-16):
- An Executive Director, preferably from among the four Commissioners, shall be appointed or designated by the Chairman to direct and supervise the day-to-day operations of the Commission
- The Executive Director shall have supervision and control over the Bureau on Administrative Services and the Bureau on Coordinating Secretariat and Support Services, each headed by a Deputy Executive Director
- Qualifications for the Executive Director and Deputies are outlined
- Functions and responsibilities of the bureaus are outlined

Appointment of Staff and Employees (Section 17):
- The staff, officers, and employees of the Commission shall be appointed by the Chairman

Tax Exemptions (Sections 18-21):
- No tax shall be levied on the use of sports facilities
- The Commission is exempted from customs duties, taxes, and tariffs on the importation of sportswear, equipment, supplies, instruments, and materials not available from local manufacturers and required for sports development and training
- Donations and contributions to the Commission, the Philippine Olympic Committee, and national sports associations certified by the Commission for sports development are exempt from donor's taxes and deductible in full from the donor's taxable net income
- The Commission, its delegations, athletes, coaches, and officials are exempt from travel tax, airport tax, and other travel-related taxes or fees

Presidential Land Grant and Sports Facilities (Sections 22-23):
- The President may grant portions of the public domain to the Commission for the establishment of regional training centers and accomplishment of its purposes
- The administration and full control of existing sports facilities owned by the national government, government-funded foundations, associations, and entities, except liabilities, shall be transferred to the Commission
- The Commission shall have full control and management of the University of Life Sports Complex two years from the effectivity of the Act, and full use and access immediately upon its organization and start of operations
- Specific provisions are outlined regarding the transfer of the Rizal Memorial Sports Complex, Quezon City Velodrome, and University of Life Sports Complex

Assistance by Government Entities and Abolished Agencies (Sections 24-25):
- The Commission may call upon any government entity for assistance in performing its functions and duties, and all heads of departments, agencies, corporations, and offices are enjoined to render full assistance and cooperation
- The Gintong Alay Foundation, Project: Gintong Alay, and all other government-funded foundations and associations related to sports are abolished, and their functions, appropriations, records, equipment, property, rights, claims, and other incidental things except liabilities are transferred to the Commission
- The abolished agencies must turn over their properties and functions to the Commission and wind up their affairs within six months, and their rank and file employees shall be absorbed by the Commission to the extent administratively feasible

Funding (Section 26):
- An amount of Twenty-five million pesos (P25,000,000.00) from the National Treasury is appropriated for the organizational and initial calendar year of operational expenditures of the Commission
- Operating expenses for the Commission shall not exceed 20% of the annual appropriation, and at least 80% of the annual appropriation and all of the national sports development funds shall be disbursed for the national sports program
- The National Sports Development Fund is constituted from 30% of the charity fund and proceeds of six sweepstakes lottery draws per annum, taxes on horse races during special holidays, 5% of the gross income of the Philippine Amusement and Gaming Corporation, proceeds from the sale of stamps, and 3% of all taxes collected on imported athletic equipment
- The Philippine Postal Service Office is authorized to print paper and gold stamps depicting sports events 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

Repealing Clause, Separability Clause, and Effectivity (Sections 27-29):
- All laws, presidential decrees, executive orders, presidential proclamations, rules, and regulations inconsistent with this Act are repealed or modified accordingly
- If any provision of this Act is declared unconstitutional, it shall not affect the validity and effectivity of other provisions
- This Act shall take effect upon its approval and completion of publication in at least two national newspapers of general circulation