Be it enacted by the National Assembly of the Philippines:

SECTION 1. The Philippine Antituberculosis Society is hereby authorized to hold annually twelve horse races, with betting, for charitable and civic purposes and to promote horse breeding in the Philippines, on a race course or race courses existing in these Islands. The horses entered in one of these races which shall be known as beginners' race, shall be such as have not yet run in any race course of the Philippines and shall be native horses not over fifty-eight inches in height.

SEC. 2. entire proceeds of these races, after deducting the expenses which shall not exceed twenty per centum of the gross receipts, and the sum required for prizes for the horses which shall not be in excess of the sums usually given in races of this description, shall be paid exclusively into the funds of the Philippine Antituberculosis Society: Provided, however, That one-fourth of the twenty per centum to be deducted from the gross receipts shall be accumulated for the payment of prizes to horses running in the national race provided for in section three of this Act:Provided, further, That the Philippine Antitubereulosis Society shall be exempt from the payment of any municipal or national tax for holding said races: Provided, finally, That five per centum of the net receipts of the Philippine Antituberculosis Society on each day of horse-racing under section one shall be set aside for the funds of the Boy Scouts, Philippine Chapter, Pioneers of the Philippines, or such other civic associations of boys and girls as the President of the Philippines may designate.

SEC. 3. In addition to the races mentioned in section one of this Act, a national race shall also be held on a day in the month of February or March of each year to be fixed by the Philippine Antituberculosis Society at least two months previously. At this national race there shall be two special races, one for beginners which shall be known as the "National Commonwealth Race" and shall be run over a distance of not less than three-fourths and one-sixteenth of a mile; and the other to be known as the "Grand Derby" in which only horses may participate that have taken part in the beginners' race held during the previous year, in accordance with section one of this Act, and which shall be run over a distance of one mile: Provided, That in order that a horse may take part in this "Grand Derby," it shall be registered within ten days after having run in the beginners' race. The other races of said day shall be ordinary races in which serial horses may participate.

SEC. 4. All proceeds derived from said national race, after deducting the expenses of administration which shall not be in excess of fifteen per centum of the gross receipts, plus the one-fourth of twenty per centum accumulated under section two, shall be set aside for the payment of prizes in the following proportion: thirty per centum to pay prizes to horses winning the first, second, and third places in the "National Commonwealth Race"; thirty per centum to pay prizes to horses winning the first, second, and third places in the "Grand Derby"; thirty per centum to pay prizes to horses winning in other ordinary races on that day; and ten per centum to pay prizes, in equal parts, to the breeders of the horses winning the first places in the "National Commonwealth Race" and "Grand Derby".

SEC. 5. The term "horses" when used in this Act shall be understood to refer to stallions and mares.

SEC. 6. This Act shall take effect upon its approval.

Enacted, without Executive approval, November 9, 1936.