Be it enacted by the National Assembly of the Philippines:

SECTION 1. Sections two and four of Act Numbered Forty-one hundred thirty, as amended by Commonwealth Act Numbered Three hundred one, are further amended to read as follows:

"SEC. 2. As an emergency measure the holding of charity horse race sweepstakes is authorized under the conditions provided in this Act. At least two of these races shall be held in the Philippines and in them only horses which have not run on any race course shall participate, and all said races shall be held under the direction and management of a public corporation to be known as Philippine Charity Sweepstake Office and to be under the supervision of a Board of Directors composed of five members, to be appointed by the President of the Philippines with the consent of the Commission on Appointments of the National Assembly, and their compensation and term of office shall be fixed by the president. In all said races, it is prohibited for any owner of horses directly or indirectly to register or make more than one entry. All horses participating in any race mus tbe presented and registered at least thirty days before the holding of the race, and they must be classified into four groups first, those with a height of less than fifty-three inches; second, those with a height of fifty-three inches or more but less than fifty-1 five inches; third, those with a height of fifty-five inches or more but less than fifty-seven inches; and-fourth, those with a height of fifty-seven inches or more.

"The corporation shall have power to sue and be sued, acquire property, and make contracts, and in general, exercise die power prescribed for corporations by the Corporation Law and necessary or (incidental to the. carrying out of the purposes for which it has been created subject to the power of the Additional Assembly to amend or repeal this Act or any part thereof at any time.

"The Chief of the Philippine Charity Sweepstake Office, who shall be known as General Manager, his assistants and the necessary personnel shall be appointed.and their salaries shall be fixed by the Board of Directors: Provided, however, That the Auditor of the office, his assistants and clerks shall be appointed by the Audi tor General.

"The salaries and wages of the personnel and the expenses of the organization and operation of the Philippine Charity Sweepstake Office shall be paid from the receipts thereof The total disbursements of the Philippine Charity Sweepstake Office for carrying out the purposes of this Act shall in no case exceed the percentage fixed in section four hereof. The General Manager shall during the first half of the month of December of each year submit to the Board of Directors an of the expenses of his office for the ensuing year, including the salaries and wages of the personnel and the estimated expenses of the holding of the sweepstake for said year, and said estimate shall not take effect until it has been approved by the Board of Directors."

"Sec. 4. The .Board of Directors shall apply and apportion the receipts froir the sale of the tickets for said races as follows

"Out of the gross receipts from the sale of tickets, sixty-five per centum shall be deducted for the payment of the prizes, 'including those to be paid to owners of winning horses and their jockeys, and ten per centum for the expenses of the management and holding of races. The prizes for winning horses and horses placed second and third shall be in direct proportion to the three main prizes for winning tickets and shall be ten per cent thereof. The remaining twenty-five per centum shall be apportioned by the Board of Directors, with the approval of the President of the Philippines, after due consideration of the recommendations of the Commissioner of Health and Public.Welfare and shall be paid over by said Board to the¦following organizations; The Philippine Tuberculosis Society; the Philippine Amateur Athletic Federation; the hospitals of the National Government; the Eoy Scouts of the Philippines; Leper Colonies and Leprosaria; and other.institutions or organizations engaged in charitable, relief, and health work or work for the improvement of the conditions of the indigent Filipino aasses in this country or abroad: Provided, however, That once a year the remaining twenty-five per centum shall be deposited in the Philippine Treasury to the credit of a special fund to be known as 'The Veterans of Philippine devolutions  Pension Fund which shall be available to the Board on Pensions for Veterans for the payment of  to veterans of Philippine Revolutions or Wears; in accordance with the provisions of Cession wealth Act Numbered Two hundred and eighty, as an sided; and provided, further, That out of the sixty-five per centus intended forth payment, in prizes, includine those to be paid to the owners of winning horses and their jockeys, there shall be deducted ten per centum thereof they shall be allotted to die provinces and cities in the Philippines, excepting the City of Manila, in proportion to the collections " therein raade arid under such rules said regulates as the Board of Directors may prescribe, the amounts so allot to be expended by the corresponding provincial, city, and municipal hospitals and for other health, social welfare, civic, and charitable works in their respective jurisdictions.

"'No aid iron the proceeds of the sweepstakes herein authorized shall be given to any charitable organization not granted a spee charter by law, unless it shall have first emplied to the rales aid regulations issued by the 3rd of Directors and approved by die President of the Philippines governing die disposition of the sleeps takes fund and in less provision is contained in its by-laws to the effect that any property acquired or which it may acquire from the funds giren to it under this Act shall not-be sold or otherwise disposed of without the approval of the President of the Philippines, and that in the event oi its dissolution all its properties shall be transferred to and shall automatically Becone the property oi the Philippine Government.

"The funds given to any institution by virtue of this section shall lie used for no other purpose than those authorized by the Board of Directors."

SEC. 2. This Act shall take effect on July first, nine-teen hundred and forty.

Approved, May 26, 1940.