Republic of the Philippines 
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FOURTEEKJX CONGRESS 
1 
First Regular Session 
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Introduced by Senator lii’Rt$PdCPS G. ESCUDERQ 
EXPLANATORY NOTE 
The Philippines, being comprised of more than 7,100 islands, boasts of one of the 
longest coastlines in the world. Our archipelago is rich in marine resources as evidenced 
by its biodiversity. All these have to be preserved and this necessitates that its territorial 
integrity be ensured. 
This bill recognizes the vital role that the Philippine Coast Guard plays in 
securing our territorial waters and in ensuring maritime safety. In times of emergency, the 
Philippine Coast Guard renders search and rescue operations which save life and 
property. 
To ensure that the best personnel are retained and that the cream of the crop is 
absorbed into the Philippine Coast Guard, adequate compensation must be maintained. 
Recognizing the spirit of voluntarism and “bayanihan”, qualified individuals aro likewise 
encouraged to join the Philippine Coasl. Guard. 
The Department of Transportation and Communications is the logical home of the 
Philippine Coast Guard. ‘This bill seeks to attach the Philippine Coast Guard with the 
Department of ‘Transportation and Communications. 
In view of the foregoing reasonS, this Measure is earnestly requested. 
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Republic of lhe Philippines 
1 
FOURTEENTH CONGRESS 
1 
First Regular Session 
1 
S E N A T E  
Bill No. 
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Introduced by Senator FRANCIS G. ESCUDERQ 
AN ACT 
REORGANIZING THE PHILIPPINE COAST GUARD AS A 
SEPARATE AND DISTINCT COMMISSIONED SERVICE UNDER 
THE 
DEPARTMENT 
OF 
TRANSPORTATION 
AND 
COMMUNICATIONS AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and House of Representatives of the 
Phil@p;ines in Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. 
Short Ti&. - This Act shall be known as the 
"?hil@pine Coast Guard Act of 2OO7. '' 
SEC. 2. 
Declaration of Policies. - The State recognizes its 
obligation to protect the marine wealth in its archipelagic waters, territorial 
seas, and exclusive economic zone, and reserves the use and employment of 
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the same to Filipino citizens. 
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The Philippines needs a balanced and hedthikl marine ecology, which 
shall (a) assure a. susiakable growth and development of its bountiful marine 
wealth and other resources; (b) encourage the growth and development of 
sea transportation RS a primary and vkal LAC of the various islands of the 
archipelago; and (c) promote e6btourism by prdjecting internationally the 
pristine beauty of its natural sceneries such as white beaches, and other 
tourist spots. 
Towards these ends, the State r e a f f i s  its obligation to protect the 
maritime environment by: (a) promoting maritime safety to prevent, 
minimize or effectively respond to marine accidents; (b) enhancing maritime 
security; (c) sxfeguatding the marine environment; and (d) maintaining and 
ensuring peace an.d order in the archipelagic waters, coastal areas, territorial 
seas and exclusive economic zone. 
CHAPTER 11 
P~HEIPPINE COAST GIJAW 
SEC. 3. 
Pplniippinnc Coast Guard. - The Philippine Coast Guard 
(PCG) is hereby reorganized as a distinct, sea-going, uniformed 
commissioned service attached to the Department of Transportation and 
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The President o f  the Republic of the Philippines may, in times war or 
national emergency declared by .Congress, revert the PCG under the 
Department. of National Defense @PsD) as a support service command. 
SEC. 4. 
Powers and Functions. - The PCG shall have the 
folIowing powers and fi\nclions: 
a) 
Enforce laws, promulgate and administer rules and regulations 
for the promotion of safety of life and property at sea and the protection of 
the marine environment and its resources within the maritime jurisdiction o f  
the Philippines; 
b) 
Render aid to persons and vessels in distress and conduct search 
and rescue in case of marine accident within the maritime jurisdiction of the 
Philippines, including the high seas, in compliance with the international 
maritime conventions. The PCG shall likewise be the center of maritime 
communications and lead coordinator during the conduct of the 
aforementioned operations; 
c) 
E,nforce and assist in the enforcement of laws on fishery, 
immigration, tariff md 
customs, forestry, firearms and explosives, 
dangerous drugs, trafficking of women and children and all other applicable 
laws within the territorial waters of the Philippines; 
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national objectives of the Commission on Higher Education, maritime 
schools and colleges may choose PCG as their partner in the National 
Service Training Program (NSTP). 
SEC. 7. 
Auxiliary Force, - The PCG may organize and train a 
civilian volunteer organization lmown as the PCG Auxiliary Force under the 
direct control and supervision of the Commandant or any other officer 
designated by him for the purpose of assisting in the promotion of safety of 
life at sea, the preservation of the marine environment arid its resources, the 
conduct of maritime search and rescue, and the maintenance o€ aids to 
navigation and such other activities that enhance maritime community 
relations which include civic action, youth development and related 
activities. 
SEC. 8. 
Cornpsilion. - The PCG shall consist of the following 
categories of officers and employees: 
1) 
Officers; 
2) 
Enlisted Personnel; 
3) 
non-uniformed personnel; 
4) 
Probationary Ensign; and 
5) 
Midshipmedwomen 
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CHAPTER Ill 
A. ORGANIZATIONAL STKUCTURE 
SEC. 9. 
Uniformed and Non-uniformed Personnel.- The PCG 
shall consist oE uniformed and non-uniformed personnel with defined Coast 
Guard Table of Organization and Equipment, specialties, ranks, ratings, and 
plantilla positions. In times of war as declared by Congress, however, the 
PCG shall be attached to the DND as a support service agency. 
SEC. 10. 
Commandarat. - The PCG shall be headed by a 
Commandant who shall carry the rank of Admiral. The Commandant shall 
be appointed by the President from among the Flag Officers in the coast 
guard active sewice who holds a Commcand-at-Sea-Badge or has served as a 
District Commander of PCG, and with more than one (I) year remaining in 
the PCG service. 
The Commandant shall have a maximum term of three (3) years. A 
Commandant who has served for three (3) yews prior to his compulsory 
retirement shall be considered as retired and shall be entitled to all the 
benefits available to a coast guard officer as if he compulsorily retired: 
Provided, That in times of war or other national emergency declared by 
Congress, the President may extend his term of office. 
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SEC. 11. 
Fw~tiuns. - The Commmdant shall exercise the 
following functions: 
a. 
Advise the President or the Secretary of the Transportation and 
Communications on the promulgations of executive orders, rules and 
regulations, proclamations and other issuances relative to matters under the 
jurisdiction of the PCG; 
b. 
Establish policies and standards for the efficient rand effective 
management and operation ofthe PCG; 
c. 
Promulgate rules and regulations necessary to carry out the 
objectives, policies, plxns, programs and projects of the PCG; 
d. 
Enter into contracts for the acquisition of floating air and sub- 
surface assets, real estate, commmiications equipment and other necessities 
relative to the performance of its powers and funstions subject to the 
limitations of existing laws, rules and regulations; 
e. 
Receive grants and other forms of assistance from other 
countries in support of PCG's continued development and mod.ernization 
projects subject to existing laws; and 
f. 
Perform such other functions as may be provided by law or 
appropriately assigned by the President or the Secretary of the 
'Transportation and Communications. 
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SEC. 12. 
Technical St?i.vices* -. There shall be Technical Services 
in the field of medical, dental, legal and ecunienical, among others, to be 
composed of medical doctors, ixirses, psychologists, veterinarians, dentists, 
lawyers, chaplains, iiriams, inkluding personnel whose pre-entry required 
course. are closely related or allied to the aforementioned professional 
groups. 
Officers appointed to the Technical Services shall have the initial rank 
of Ensign except for dentists and veterinarians whose initial rank shall be 
Lieutenant Junior Grade and lawyers, medical doctors, chaplains and hams, 
whose initial rank shall. be Lieutenant Senior Grade. 
B. 
PERSONNEL A
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WELFARE AND 
BENEFITS 
SEX. 13. 
Appoim'ment. - The appointment of all PCG officers 
shall be approved by the President of the Republic ofthe Philippines through 
the Secretary of DOTC, No person shall be appointed as a PCG officer 
unless the candidate is a holder of a baccalaureate d.egree in related fields of 
coast guard functions, preferabbEy a licensed. professional. The FCG may 
continue to source its officers: from leading universities, maritime 
institutions and service academies until such time a Philippine Coast Guard 
Academy is established. 
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The appointments and promotions of all PCc enlisted personnel shall 
be made by the Commandanit in accordan.ce with the implementing rules and 
regulations issued pursuant to this Act. 
Appointments wpd promotions of a11 non-uniformed personnel shall be 
in accordance with the civil service laws, rules and regulations. 
SEC. 14. 
Promotion of Un&wmed Personnel. - The Commandant 
shall recommend lo the President, through the Secretary of Transportation 
and Communications the promotion of PCG officers who are best qualified 
for appointment. The names shall be submitted by the PGG Selection and 
Promotion Board from among the nominees who are qualified for the 
appointment. In order to qualify as a nominee, a candidate must have 
completed the required education and training relevant to said grades or rank 
and nwst have complied with the prescribed minimum tinie based on 
approved PGG Riles and regulations and other relevant laws: Provided, That 
special or meritorious promotion shall be extended to any PCC Officer for 
acts of inconspicuous courage and gallantry involving risk of life above and 
beyond the call of duty: Provided, filrthcr, 'That no officer shall be promoted 
to the next higher rank when he or she has less than one (1) year remaining 
in the PCG service. 
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SEG. 15. 
Board o f F l q  Officers. - There shall be a Board of Flag 
O f f i m  outside the FCG who shall deliberate on the promotion and assignment 
of candidates for flag rsaralts in the PCG. The Secretary of Transportation and 
Chnm~cations shall ad as &lairman of the Board witb m e d m  composed 
of the three (3) nndersecretaries of the DOTC, the Commandant PCG, and 
PCG Chief of Personnel as Secretariat and non voting member. 
SEC. 16. 
Promotion of Enlisled Personnel and Non-uniformed 
Employees. -. The Commandant shall promote enlisted persormel to the next 
higher grade rank based on the recommendation of the PCG Selection and 
Promotion Board. The promotion of non-uniformed employees shall be 
governed by the civil service laws, d e s  and regulations. 
SEC. 17. 
Retirement aid Health Care System. -- Officers and enlisted 
personnel who have attained the age of fifty-six (56) or has thirty (30) years 
of active accumulated govemment service as commissioned officer or 
enlisted personnel in the PCG, including the services rendered as 
commissioned officer or enlisted personnel in other uniformed service, 
whichever conm first, shall be retired compulsorily from the service: 
Provided, That officers and enlisted personnel who have served at least 
twenty (20) years of satisfactory active service, shall be allowed to retire 
optionally, at their own request and with the approval of the Secretary of 
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Transportation and Gon?niu&ations and the Commandant. 
For the purpose of deteimhing the compulsory retirement of PCG 
unifomied personnel, thirty (30) years of active coast guard service shall be 
reckoned from the date of oath of office as regular second lieutenant or 
ensign or apprentice s e a m  or seawoman, inclusive of the services rendered 
in other unifomied services: Provided, That services rendered prior to the 
commissionship or enlistment in the uniformed service and those other 
services rendered in the government service shall be accredited €or purposes 
of longevity pay. 
The retirement of all non-uniformed personnel shall be in accordance 
with the civil service laws, rules and regulations. 
SEC. 18. 
Sepnmtion. .- Officers and enlisted personnel who 
voluntarily resign or otherwise fail to comply with the standards of 
competence and proficiency shall be separated from the service under 
existing laws, rules and regulations: Provided, That PCG personnel who has 
served continuously for at least five (5) years and who is separated through 
no fault of his own or voluntarily resign shall be entitled to a separation pay 
equivalent to one (1) month salary for every year of sewice in addition to the 
commutation of all the accumulated leaves to his credit. 
SEC. 19. 
Retirement Bevrejits. - The monthly retirement pay shall 
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be seventy percent (70%) ofthe base pay and longevity in case the retiree 
has rendered at least twenty (20) years of unifomed service increasing by 
two and one-half percent (2 '/2> for every year of actual uniformed service 
rendered beyond twenty (20) years of service but not more than ninety-five 
percent (95%): Provided, That the retiree shall have the option to receive in 
advance the retirement lump sum equivalenl to the first five (5) years of 
retirement pay as it accrues: Provided, further, That the payment of the 
lump sum shall be made within six months from the effectivity date of 
retirement: Provided, jinalZy, That the retirement pay of all uniformed 
personnel shall conform with the prevailing pay scale of members in the 
active service. 
The retirement benefits of all non-uniformed personnel shall be in 
accordance with the civil service laws, ruies and regulations. 
C. 
DZSCPPEPNE AND ORDER 
SEC. 20, 
Disciplinary Actiom. - In dispensing discipline and 
order among officers and enlisted personnel, the PCG shall continue to adopt 
the provisions of Commonwealth Act No. 408, as amended, with the 
Commandant of the PCG as the conven.ing authority, until such time that the 
PCG. has established its own Code of Conduct and Discipline. 
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CIUBTER pv 
FAY AND ALLOWANCES FOR ~~~~~~~~~ 
~~~~~~E~ 
SEC. 21. 
Duty Ho~rs. - PCG personnel shall be on call 24-hours a 
day but are required to render minimum service of 8-hours a day except on 
scheduled duty or during red alert or national emergencies. 
SEC. 22. 
Salav Scale. - The PCG shall have a salary scale 
separate and distinct from other agcncies of the govement to attract the 
best and competent in the coast guard service. The salary scale shall 
undergo review every three (3) years. PCG uniformed personnel shall 
receive the same base pay and other benefits as are now or hereafter may be 
authorized corresponding to the salary scale of the personnel of the 
Department of Education or at par with other government agencies 
performing law enforcement functions, whichever is higher. 
SEC. 23. 
Criterh fop $darles. -. PCG personnel’s salaries shall 
correspond to the following criteria: 
a) 
Salary shall ensure that the lowest in rank and position receives 
an m o m t  which will enable him and his family to afford a reasonable and 
decent standard of living; and 
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R i s k  &nthly salary shall exclude the subsistence allowance, 
cost of living allowance, quarters allowance, clothing allowance, hazard pay, 
melioration pay, heahh care pay and all other allowances as may be 
provided fir by existing laws. 
SIX. 24. 
Cost of~kiving Allowance. - PGG personnel salaries shall 
keep pace with the rise in the cost o f  living which shall automatically follow 
changes in cost-of-living index as determined by appropriate government 
agencies. 
SEC. 25. 
Special Allowances, -- In areas wherein PCG personnel 
are exposed to risks or hazards which ordinarily and usually occur in the 
course of the performance of its mandated functions and established to be 
peculiar to any give11 area or place o f  assignment, as determined by the PCG, 
they shdll be compensated with any of the follovr7ing special allowances 
based on their current basic monthly pay, to wit: 
a) 
SeaDwBgr Pay. 
Personnel performing sea duties shall be 
entitled to a Sea Duty Pay equivalent to fifty percent (50%) o f  their basic 
monthly pay; 
b) 
IE&MC~O~ 
Duty Pay. 
Personnel performing actual duties as 
an instructor shall be entitled to Instructor Duty Fay equivalent to fifty 
percent (50%) oftheir basic monthly pay; 
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c) 
Aviation Duty Pay, 
Personnel performing aviation duties 
shall be entitled to Aviation Duty Pay equivalent to fifty percent (50%) of 
their basic monthly pay; 
d) 
High Risk Duty Pay. 
Personnel performing actual duties 
which may be classified as hi& risk by the Commandant shall be entitled to 
a High Risk Duty Pay equivalent to fifby perccnt (50%) of their basic 
monthly pay; 
e) 
Hazardous DMQ Pay. 
Personnel performing duties which 
may be classified as hazardous as determined by the Commandant shall be 
entitled to a Hazardous Duty Pay equivalent to fifty percent (50%) of their 
basic monthly pay; 
f, 
Occupational Safety Pay. 
Technical personnel performing 
duties in legal, medical, dental, and ecumenical services shall be entitled to 
Occupational Safety Pay equivalent to fiky percent (50%) of their basic 
monthly pay. 
SEC. 26. 
Variable Pay and Allowances. - In addition to the basic 
monthly salary, PCG uniformed personnel shall be entitled to Subsistence 
Allowance, 
Quarters Allowance, 
Clothing Allowance, 
Additional 
Compensation Allowance, Personnel Emergency Relief Allowance, Health 
Care Allowance, Lawicky Allowance, Specialist Duty Pay, Productivity 
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Incentive Pay, Magna Guta <ay (public health worker), Special Clothing 
Allowance, Burial Pay, Overseas Pay, Winter Clothing Allowance, 
Radiation Pay, Special Counsel Allowance, Additional Subsistence 
Allowance, and other allowances as may be provided for by law. 
SEC.27. 
Longevity Pay, - PCG uniformed personnel shall be 
entitled to a longevity pay of fifteen percent (15Y0) of their basic monthly 
pay for every five (5) years of service in the government which shall be 
computed from the date of the member’s first appointment in the 
government service: Provided, That the longevity pay shall not exceed sixty 
percent (60%) of the basic monthly pay. 
SEC. 28. 
Compensation for Physical and Mental Disability 
Sustained iat Line of Duty. - PCG uniformed personnel shall be protected 
against. the consequences of employnent injuries. 
PhysySical 
and 
psychological stresses on the health of PCG uniformed personnel are 
recognized as compensable occupational diseases in accordance with 
existing kws. 
SEC. 29. 
Permaneat Physical Disabili$ - A uniformed personnel 
who incurs a. total permanent disability in the line of duty and has rendered a 
total of twenty (20) years of continuous active duty in the service shall be 
compulsorily retired: Provided That upon his compulsory retirement, he 
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shall be entitled to a retircment pay pursuant to the pertinent provisions of 
this Act. 
SEC. 30. 
Disnbili@ Benefits. - Any PCG uniformed personnel and 
his dependents shall be entitled to all benefits relative to the personnel’s 
permanent incapacity as may be provided for under this Act or existing laws. 
Leave of Absence. -- In addition to other privileges 
enjoyed under existing laws, PCG uniformed personnel shall also be entitled 
to the following: 
a) 
SEC. 31. 
Study leave with pay not exceeding two (2) years. NO grantee 
shall be allowed to accumulate more than two (2) years of study leave except 
when an extra semester is needed to complete and defend thesis for a 
graduate study or degree that is relevant to the coast guard service. 
b) 
An indefinite leave of absence due to sickness which shall be 
granted to an ailing personae1 whose medical treatment requires more than 
one (1) year of continued treatment. 
c) 
Leave with pay shall be chargeable against his leave credits. 
Leave without pay shall not be granted whenever the personnel has leave 
with pay to his credit. 
d) 
Vacation leaves shall accumulate and any part thereof not taken 
within the calendar vear mav be carried over the succeeding Years subject to 
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civil service ~ u i e s  oii ' aGmulation of vacation leaves. 
Whenever 
uniformed persoimel rezires, voluntasily resigns or is allowed to resign or is 
separated from the service through no fault of his own, he shall be entitled to 
the commutat.ion of dl the accumulated leaves to his credit. 
SEC. 32. 
Ho~sirql: 
and Settlement BenejZts. - AI1 real estate under 
the possession, supervision, control, or titled under the PCG including those 
transferred tQ it And those it may legally claim by virtue of Executive Order 
No. 475 and Executive Order No. 477 ,which may be determined by the 
Commandant to be appropriate and best suited for housing and settlement 
purposes of PCG personnel in the active service shall be appropriated for the 
said purpose. PCG personnel shall also enjoy equal opportunity lo such 
other housing projects that the government may provide for government 
employees: Provided, That. appropriations shall be provid.ed for the herein 
purpose accordingly. 
SEC. 33. 
Exemption from Attw#tmm.nl and Taxes. -_ All benefits 
granted by this Act, including benefits received fkom any government 
insurance agencies or corporations, shall be exempted from attachment, 
levy, execution or any tax of whatever nature. 
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G'ICklaFTER v 
PAY AND ALLOWANCES FOR ~
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PERSONNEL 
SEC. 34. 
Pay and Allowances ~
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PCG Personnel. 
- The salaries and allowances of the non-uniformed employees of the PCG 
shall be in accordance with the Revised Compensation and Position 
Classification Law and other pertinent laws. 
CHAPTER v11 
FINAL 1PROWSPQ)NS 
SEC. 35. 
Appropriations. - The budget of the PCG shall be 
provided for in the annual General Appropriations Act. The PCG shall 
prepare its own budget as Key Budgetary Unit @BU) being an attached 
agency of the Department of Transportation and Communications. 
SEC. 36. 
PCG Trust Receipts. - The PCG shall continue to collect 
fees, charges and fines, eo include lighthouse dues, relevant to the exercise of 
its various regulatory functions. AI1 income derived fiom the collection of 
fees and cliarges and such other sources shall be retained and constituted as a 
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trust receipt which shall be deposited in any authorized government 
depository bank for the use of the PCG in the maintenance and repair of its 
assets such as but not limited to, vessels, aircrafts, navigational aids and 
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lighthouses: Proviu'ed, That at least thirty percent (38%) shall be used in the 
proc,urement and acquisition of commmications and rescue equipment, 
armaments, anmunition, and as contingency 'knd for petroleum, oil and 
lubricants (POL) requirement during emergencies: Provided, further, That 
no amount of the said trust receipt shall be used for the payment of salaries 
and other allowances. 
The PCG and the Department of Budget and Management shall jointly 
issue guidelines €or the implementation of this section and the trust receipt 
shall be subject to government accounting and auditing rules and 
regulations. 
SEG. 37. 
Implementing Rules a d  ~ e g ~ l a ~ i ~ ~ ~ ~  
- Within ninety 
(98) days fiom the approval of thi.s Act, the Secretary oE Transportation and 
Communications shall promulgate rules apld rewlations necessary to ensure 
its effective implementation. 
SEC. 38. 
SepambiliQ Clause. - If any portion or provision of this 
Act is declared unconstitutional or invalid, other sections or parts not 
affected shall remain in fill force md effect. 
SEC. 39. 
Repealing Clause. - All laws, decrees executive orders, 
rules and regulations and other issuances or parts thereof which are 
inconsistent with this Act are repealed, amended, or modified accordingly. 
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circulation. 
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Approved, 
SEC. 40. 
EjJeclfv& - This Act shall take effect fifteen (15) days 
following its publication in two (2) national newspapers of general 
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