AIMS AND OBJECTIVES. The Commission shall have the following aims and objectives:

a. To promote and maintain efficient and unbiased operation of racing exclusive of the supervision of betting therein;

b. To raise public confidence in the sport and minimize infraction of the rules of racing; and

c. To improve the breed of Philippine horses and to prevent illegal importation of racehorses.

ALLOWANCES AND PER DIEMS. - The Chairman of the Commission shall receive a monthly commutable allowance of ONE THOUSAND Pesos and a per diem not to exceed Three Hundred Pesos for each meeting actually attended by him; PROVIDED, That such allowance and per diems shall not exceed Two Thousand Two Hundred Pesos during any one month.

The other members of the Commission shall receive a monthly commutable allowance of Eight Hundred pesos and a per diem not to exceed Two Hundred Pesos for each meeting actually attended by them; PROVIDED, That such allowance and per diems shall not exceed One Thousand Six Hundred (P1,600.00) pesos during any one month for each member.

The functions of the Games and Amusements Board with respect to horse-racing, except those related to the supervision and regulation of betting in horse-racing as provided for in Sections 6, 11, 15, 8 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.

The Jockeys and Horse Trainers Injury, Disability and Death Compensation Board created under Republic Act No. 6115 is hereby abolished, and its functions, together with the Jockeys and Horse Trainers Compensation Fund, are hereby transferred to the Philippine Racing Commission to be administered in accordance with the provisions of R.A. 6115 and P.D. No. 711.

SPECIFIC POWERS. Specifically, the Commission shall have the power:

a. To enforce all laws, decrees and executive orders relating to horse-racing that are not expressly or impliedly repealed or modified by this Decree, including all such existing rules and regulations until otherwise modified or amended by the Commission;

b. To prescribed additional rules and regulations not otherwise inconsistent with this Decree;

c. To register race horses, horse owners, and associations or federations thereof; and to regulate the construction of race tracks and to grant permit for the holding of races;

d. 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;

e. 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;

f. 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;

g. 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;

h. To approve the annual budget of the Commission and such supplemental budgets as may be necessary;

i. 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

j. To enter into contracts involving obligations chargeable to or against the funds of the Commission.

OTHER POWERS AND DUTIES:

a. 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;

b. 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;

c. 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, rulings and decisions may be appealed to the President of the Philippines within seventy-two hours from receipt of such order, ruling and decisions.

d. For the purpose of carrying out the provisions of this Decree, the Commission may 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 hearings and investigations on any matter pending before it; and

e. The Commission shall perform such other duties and exercise all other powers and incidental or necessary to the accomplishment of the aims and objectives of the Commission.

FUNDING. In order to provide the necessary funds to cover the expenses of the Commission and such other purposes authorized under this Decree, one per centum 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 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 Racing Commission shall be temporarily suspended from all benefits other than the medical and hospitalization expense during the period of suspension.

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

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.

SUPPLIES AND SERVICES OTHER THAN PERSONNEL. All purchases 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) on 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, 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 Fifty Thousand Pesos for any one month: PROVIDED. FINALLY, That in comparing bids and in making awards, the Commission shall consider such factors as the cost and relative quality and adaptability of supplies or services; the bidder's 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.

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, 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 month salary for every year of service in the government on the basis of the highest salary received by them, subject o 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 months from the promulgation of this Decree. Pending the reorganization, the Farm shall be under the supervision and control of the Commission.

REPEALING CLAUSE. The provisions of Republic Act 309, as amended and all other acts, decrees, executive orders, rules and regulations or parts thereof which are not inconsistent with the provisions of this Decree are hereby either repealed or modified accordingly.

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.