Excerpts from the minutes of the meeting of the Board of the Philippine Racing Commission (Philracom) held on the 13 March 2013 at the 4th Floor Electra House Bldg., Esteban St., Makati City.

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WHEREAS, under Section 11 of Presidential Decree No. 420,the Philippine Racing Commission (Philracom) in order to provide the necessary funds to cover its expenses and such other purposes, is entitled to one per centum of the gross receipts derived from the total sale of tickets for daily double, llave, forecast, jackpot and other similar events;

WHEREAS, Section 11 of Presidential Decree No. 420 did not provide for the due date or period within which the said one per centum share on the gross receipts of betting tickets in horse races shall be remitted to Philracom;

WHEREAS, the Commission on Audit per its Annual Audit Report for the year 2011 called the attention of Philracom regarding its failure to enforce timely collection of the mandated one percent share on the gross sales of betting tickets in horse races conducted by the Racing Clubs;

WHEREAS, the Commission on Audit recommended that Philracom management establish a stricter collection policy so that all revenues are collected in full when due;

WHEREAS, Philracom has been granted the power to enforce all laws, decrees and executive orders relating to horse racing and to perform all duties and exercise all powers incidental or necessary to accomplishment of the aims and objectives of the Commission.

NOW THEREFORE, RESOLVED, as it hereby, RESOLVED that the Racing Clubs be obliged to remit the one per centum of their gross receipts of betting tickets, as mandated by Presidential Decree No. 420, to the Philippine Racing Commission, within fifteen (15) after the scheduled race day or after the billing is sent to the Racing Club by the Philippine Racing Commission;

RESOLVED FURTHER, that in case any of the Racing Club fails or refuses to remit its share of one per centum to the Philippine Racing Commission on gross sales of betting tickets from horse racing when due then such amount owing shall bear interest at the rate of one percent (1%) per month of delay as penalty or the Philippine Racing Commission may refuse to grant the permit for racing.

RESOLVED FINALLY, that this resolution/rule shall be effective starting April 1, 2013.

APPROVED AND SIGNED by the undersigned Chairman and Commissioners of the Philippine Racing Commission this 13 March 2013 at Makati City, Philippines.