REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS
First Regular Session

House Bill No. 3579

Introduced byMAGDALO Party List Representatives
Francisco Ashley L. Acedillo and Gary C. Alejano

EXPLANATORY NOTE

‘The transportation sector plays a vital role in the continued growth of the Philippine economy.
The transport industry provides Filipinos the necessary access to work and services that fuel the continued
growth of our economy. With 7,107 islands, and three major island groups, various modes of
transportation, specifically Land, Air, Water, and Rail, play their roles in the movement of passengers in
the country. These modes have their respective markets and geographic coverage.

‘The rapid urbanization of the Philippines provided for the increased used in the different transport
modes in the country. An estimated 70% of the Filipinos take public transport; this could be as high as
80% in urbanized cities. There are currently over 23,000 buses, 36,000 taxis, and about 217,000 jeepneys
present in our roads throughout the country providing public transportation services. The transport sector
has contributed significantly in our country’s economic growth.

However, there are a number of issues in the transport sector that the government needs 10
address among which are: the decline in the quality of public transport facilities, increased air pollution,
road accidents, and the issue of transportation security.

The Philippines has been a signatory to various intemational conventions with regard to
transportation security, the transportation security administration in Maritime travel under the
International Maritime Organization (IMO) and in Civil Aviation under the International Civil Aviation
Organization (ICAO). The Office for Transportation Security (OTS) was created by virtue of Executive
Order No. 277 in January 30, 2004 by Pres. Gloria Macapagal-Arroyo. On April 26, 2004, the OTS was
designated as the single authority responsible for the security of the transportation systems of the country.

Since the terror attack in the US on September 11, 2001, which claimed thousands of lives,
governments around the world committed themselves to introduce various security measures to combat
terrorism. The Philippines has not been spared from these terror attacks. On August 5, 2011, a suspected
car bomb in Cotabato City killed at least eight (8) people and injured over thirty (30). On September 30,
2013, a powerful explosion ripped through a passenger bus and killed three (3) people in Zamboanga
. The Rizal Day bombing of the Light Rail Transit as well as the bombing of the Davao International
Airport and the Sasa Warf highlight the need to empower and strengthen transportation security in our
country.

This measure seeks to create the Philippine Transportation Security Authority (PTSA), to be
attached to the Department of Transportation and Communications (DOTC), which shall replace the OTS,
‘The PTSA shall formulate, develop, adopt, prescribe and implement transport security standards. It shall
also render regulatory and oversight functions on prescribed transportation security standards undertaken
by agencies involved in transportation security services.

In view of the foregoing, the immediate passage of this measure is earnestly sought.

iCISCO ASHLEY L. ACEDILLO-



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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No,_39'79

Introduced byMAGDALO Party List Representatives
Francisco Ashley L, Acedillo and Gary C. Alejano

AN ACT
PROVIDING FOR A TRANSPORTATION SECURITY REGULATORY PROGRAM,
CRIMINALIZING ACTS OF UNLAWFUL INTERFERENCES IN THE
TRANSPORTATION SYSTEM, LEGISLATING FOR THE PURPOSE THE CREATION
OF THE PHILIPPINE TRANSPORTATION SECURITY AUTHORITY (PTSA),
DEFINING ITS POWERS AND FUNCTIONS AND APPROPRIATING FUNDS
THEREFOR

Be it enacted by the Senate and House of Representatives in Congress of the Philippines

assembled:

Title I
General Provision

SECTION 1. Short Title. - This Act shall be known as the “Philippine Transportation
Security Act of 2013”.

SEC. 2. Declaration of Policy. - It is hereby declared to be the policy of the State to
recognize the vital role of public transportation and commerce in nation building and in the
promotion of international and domestic trade relations for economic growth among nations. For
this purpose, the State, in preserving and protecting the rights of its people to a secured public
transport system, hereby supports and promotes the installation and implementation of
consolidated transportation security management to improve and maintain safe, convenient and
effective modes of air, land and water transportation systems, in full compliance with the
international laws, standards, regulations and practices, likewise fostering state of the art security

measures in the country’s transportation system.

SEC. 3. Compliance with International Conventions.- As a member of the community
of nations and signatory state to international conventions, the Philippines shall dutifully comply
with the provisions of the transportation security administration in Maritime travel under
International Maritime Organization (IMO) as stated in Chapter X1-2-Regulation 1, Definitions

No.1 and 4 of the International Ship and Port Facility Security Code (ISPS CODE) and in Civil

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Aviation under Chapter 3 (3.1.2) of Annex 17 of the International Civil Aviation Organization
(ICAO).

Title
Unlawful Interference, Others
SEC. 4. Prohibited Acts. - The following acts and omissions shall be considered
prohibited acts:
a) Unlawful interference in the transportation system refers to acts or omissions that

breach the security or interfere with the efficient, smooth and regular operation of

transportation system, ports, airports, terminals, services or facilities, thereby causing
death, physical injury, damage to, or loss of property;

b) Providing material, financial or moral support in aid of unlawful interference in a

public transport service, facility or system except in the furtherance of legitimate
protest, grievance or advocacy;

©) Malicious reporting of incident or releasing, without authority, any classified

transport security information, which may jeopardize the security of public
transportation system in the Philippines;

d) Failure of refusal to implement transportation security regulations in a public

transportation system as required by this Act;

e) Abuse the use of public transport franchise permit, and other certificates of public

convenience; and
f) Failure or refusal to disclose, or report information concerning any breach in

transportation security.

SEC.
day to twelve (12) years and a fine ranging from Fifty thousand pesos (P50,000.00) to Five

Penal Provisions. a) The penalty of imprisonment of six (6) years and one (1)

hundred thousand pesos (P500,000.00) shall be imposed upon any person or group of persons
who shall violate Section 4(a) of this act.

The penalty of imprisonment of (6) months and one (1) day to six (6) years and a fine
ranging from ‘Twenty thousand pesos (P20,000.00) to Three hundred thousand pesos
(P300,000.00) shall be imposed upon any person who shall violate Section 49(b), (¢), (@), (e)
and (f) of this act.

Title
Creation of the Philippine Transportation Security Authority (PTSA)

SEC. 6. The Philippine Transportation Securing Authority (PTSA). - There is hereby
created a transportation security regulatory body to be known as the Philippine Transportation


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Security Authority (PTSA), which is authorized to implement the IMO-ISPS Code and Annex 17
of the ICAO Convention and the National Transportation Security Program (NTSP) under this
act. It shall be an agency attached to the Department of Transportation and Communications
(DOTC), and shall exercise the following mandate;

a) Render regulatory and oversight function on prescribed transportation security
standards undertaken by agencies like the Civil Aeronautics Board (CAB), the Civil Aviation
Authority of the Philippines (CAAP), the Philippine Ports Authority (PPA), Maritime Industry
Authority (MARINA), Subic Bay Metropolitan Authority (SBMA), Cebu ports Authority (CPA),
Bases Conversion Development Authority (BCDA), Philippine Veterans Investment and
Development Corporation (PHIVIDEC), Land Transportation Office (LTO), Land
‘Transportation Franchising and Regulatory Board (LTFRB), Philippine National Police-Aviation
Security Group (PNP-ASG), Maritime Group (PNP-MARIG), Traffic Management Group (PNP-
TMG), Armed Forces of the Philippines (AFP) when appropriate, Philippine Coast Guard
(PCG), Airport Police (AP), Customs Police (CP), Metro Manila Development Authority
(MMDA), Light Rail Transit Authority (LRTA), Philippine National Railways (PNR), Metro
Rail Transit 3 (MRT 3) Office, Autonomous Region for Muslim Mindanao (ARMM) and such
other agencies and instrumentalities related to transportation security;

b) Formulate, develop, adopt, prescribe and implement security standards, security
regulations and measures, international protocol, procedures and policies including universally
accepted standards for the prevention of security risks and incidents, and;

¢) Collect fees and impose fines for the regulation and prevention of transportation.
security incidents and for the protection and security of passengers, crews, cargoes, baggage,

personnel, transportation facilities, infrastructure and others.

SEC. 7. Powers and Functions. - the PTSA shall have the following powers and

functions:

a) Ensure safe and efficient security measures exercised by the different government
agencies involved in the transportation system, including but not limited to, the
inspection of passengers, baggages and cargoes as well as the hiring and training of
personnel in security screening, inspection, verification and audit;

b

Determine tariffs, fares, rates, charges and fees as it may deem necessary for air, land
and water transport security services and prescribe the manner by which fees shalll be
paid and collected, subject to the provisions of this Act, notwithstanding any laws to
the contrary;

©) Formulate and adopt a National Transportation Security Program for air, land and

water; Prescribe rules and regulations for the issuance of security access pass and the
determination of levels of security clearance for all air, land and water transportation

facilities and infrastructures;


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4) Promulgate and issue rules and regulations governing the technical, economic, and
security aspects of the transport system for the security, safety, benefit and interest of
the public;

e) Investigate any act of unlawful interference against public transportation system,
facilities and infrastructures, and coordinate the filing appropriate charges related
thereto in accordance with law;

f) Acquire, purchase, own, administer, lease, mortgage, sell, encumber, or otherwise
dispose of personal and real properties, equipment, property rights, and interest
therein;

2) Sue and be sued in its corporate name;

h) Determine the original structure of the Authority; establish a human resources
management system based on the merit and fitness, and adopt a rational
compensation and benefit scheme;

i) Receive and assess intelligence information related to transport security threats;

§) Develop policies, plans and strategies against transportation security threats for all
air, land and maritime transportation system in the Philippines, and;

k) Perform such other functions necessary to effective carry out the provisions of this
act.

SEC, 8. National Transportation Security Committee (NTSC). - There is hereby

created a National Transportation Security Committee (NTSC) for the different modes of

transport, which shall cover air, maritime, and land transportation, respectively. The composition

of the respective National Committees shall be designated through a department order issued by

the Secretary of DOTC upon the recommendation of the PTSA;

SEC. 9. Duties of the respective NTSC. - The respective NTSC for Air, Maritime, and

Land Transportation shall;

a)

b)

°)

Help coordinate and allocate security activities among the agencies of the government,
airport, and seaport authorities, aircraft and sea-craft operators, terminals and bus and
train operators or entities concerned with or responsible for the implementation of the
National Transportation Security Program.

Recommend policy guidance for the promotion and development of transportation
security as provided in this Act, and;

Submit an annual assessment report to the President of the Philippines.

SEC. 10, Meetings.- the NTSC shall meet regularly at least once a year and may hold

special meetings to consider urgent matters upon call of the Chairman or any (3) members of its

respective membership, The PTSA shall serve as the secretariat of the NTSC.


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SEC. 11. Organizational Structure of the PTSA.- The Authority shall consist of the
Board of Directors, Administrator, Deputy Administrator and the Service Directors.

SEC. 12. Board of Directors.- The corporate powers of the Authority shall be exercised
by and vested in a Board of seven (7) members, which shall be composed of the Chairman, Vice
Chairman and five (5) members.

‘The Secretary of Transportation and Communications shall be the ex-officio Chairman of
the Board. The PTSA Administrator shall be the ex-officio Vice-Chairman of the Board and five
(5) other members shall be representatives of the private sector, all of whom must be at least
forty five (45) years of age; must have experience in a field directly related to transportation
security and must have at least five (5) years experience in the management of a field directly
related to security or allied services. The five (5) members of the Board of Directors shall serve a
term of five (5) years of initial appointments, the first three (3) members appointed shall hold
office for five years, and the last two (2) members shall hold office for three (3) years.
‘Appointment to any vacancy shall be only for the unexpired portion of the term of the
predecessor. In no case shall any member be appointed or designated in a temporary or acting
capacity.

‘The Board shall meet regularly once a month and as often as the exigency of the service
demand. The presence of at least four (4) members shall constitute a quorum; and the vote of a
majority of the members or representatives present, there being a quorum, shalll be necessary for
the adoption of any rule, regulation, resolution, decision or any other act of the Board’.

SEC. 13. Functions, Powers and Duties of the Board - Without prejudice to the powers
vested in the Board by virtue of the other Sections herein, the Board shall have the following
powers and duties:

a) To define and approve the national transportation security programs, plans, policies,

procedures and guidelines of the Authority;

b)

To recommend to the President of the Philippines, for appointment the administrator
of the Authority who shall be the Chief Executive Officer of the Authority;

©)

To approve the Authority’s organizational and administrative structure, staffing

pattern, operating and capital expenditures, and financial budgets, prepared in

accordance with corporate plan of the Authority, upon recommendation of the

Administrator;

d) Ensure that each airport, seaport or terminals shall establish and implement a written
Security Plan (SP) appropriate to meet the requirements of the national
‘Transportation Security Program;

e) Review, define and allocate tasks to coordinate activities among the agencies of the

government, airport, seaport and/or land authorities, aircraft, seaport and land

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transport operators and other entities concerned with or responsible for the
implementation of the various aspects of the National Transportation Security
Program, and;

£) All other functions and powers necessary or incidental to attain the purpose and
objectives of this law.

SEC. 14. Administrator and Deputy Administrator, - The PTSA shall be headed by
‘an Administrator, to be assisted by a Deputy Administrator, who shall be responsible for the
general administration and management of the agency. The Administrator must be a natural born
citizen of the Philippines, at least thirty-five (35) years of age, with at least ten (10) years of
experience in the field of transportation or security, five (5) years of which shall be in the field
directly related to a security or allied services. The deputy administrator shall have the same
qualifications as the Administrator.

‘The Administrator and Deputy Administrator shall be appointed by the President of the
Philippines for a term of six (6) years from the date of their appointment to office.

SEC. 15. Powers and Functions of the Administrator. - The Administrator shall have
the following powers and functions:
a) Execute, administer and implement the objectives, policies and programs of the
‘Authority and enforce decisions, orders, rules, and regulations approved or prescribed
by the Board of Directors;

Determine sensitive security information and prohibit the disclosure of information,

b)

files or records or date of any sort, if in his option, the disclosure of such information
shall, (1) be detrimental to the security of persons and things in the transportation
sector; (2) reveal trade secrets, privileged or confidential information obtained from
any person, natural or juridical; (3) constitute unwarranted invasion of privacy of
persons, including but not limited to, information contained in any personnel, medical
or similar file; (4) undermine public trusts and confidence in duly constituted
authorities in the exercise of judgment calls and discretions in any or all risk
managements and preventive or preemptive actions undertaken.

In view hereof, the officials and employees of the Authority shall not be
compelled to be a witness, report, inform, or testify in any inquiry or forum of
whatever nature called for the purpose unless authorized in writing and within the
scope of authorized inquiry by the President of the Republic of the Philippines or
either Houses of Congress of the Philippines.

c) Direct and supervise the management, operations, and administration of the Authority
in accordance with international standards of transportation security, and impose

fines, penalties and similar sanctions for any violations thereof;


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4) Exercise visitorial, surveillance and inspection powers in all areas within the
jurisdiction of the Authority including but not limited to transportation terminals,
stations and buildings, offices, and seaports and airports, tarmacs, wharfs and similar
infrastructures and issue travel and mission orders for the purpose;

©) Undertake research studies, investigations and other activities related to contemporary
transportation system security and future innovative requirements thereof, on his own
initiative or upon instruction of higher authorities, and to submit comprehensive
reports and appropriate recommendations to the Board for proper actions;

f) Recommend the formulation, development, implementation, revision and update of
the Air, Land and Maritime National Transportation Security Programs and
Operational Plans or Manuals;

2) Prescribe schedules for security fees, rates and charges consistent with prevailing
international standards for the use of airports, seaports, terminals and other
transportation facilities or infrastructures. The revenues collected thereon shall be
reported to the National Treasury and shall thereafter be disbursed by the Authority
for the continuing support and upgrade of the administration, operation and services
of the Authority to effectively carry out the objects of this Act, subject to existing
auditing and accounting laws, rules, regulations and procedures;

h)

Appoint, transfer, suspend, remove or otherwise discipline any subordinate officer or
employee of the Authority, subject to Civil Service laws, rules and regulations; and
Perform such other functions necessary to effectively carry out the provisions of this

act.

SEC. 16. Removal for Cause. - The Administrator may be removed from office for
cause as provided by law. In case of death, resignation, removal or permanent disability of the
Administrator, the Deputy Administrator shall act as Administrator in a concurrent capacity until
the new Administrator shall have been appointed and qualified.

SEC. 17. Prohi
all other officials and employees of the authority shall not own any shares of stock or bond in
any transportation or security enterprise or in an enterprise that manufactures facilities and/or

ion. - The Administrator, the Deputy Administrator, the Directors and

equipment used for transport security. They shall strictly avoid conflict of interest in the conduct
of their office. Any violation hereof shall be dealt with in accordance with law.

SEC. 18. Membership in the National Security Council. - The Administrator or his
representative is hereby designated as member of the National Security Council and shall report
directly to the President of the Philippines regarding sensitive transportation security

information.


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Sec. 19. Oversight Personnel. - For the purposes of implementing the provisions of this
‘Act and in addition to the personnel of PTSA, the personnel of units or offices of the Philippine
Coast Guard (PCG); Philippine Ports Authority Police (PPAP); Airport Police; Customs Police;
PNP-Maritime Group (PNP-MARIG); PNP-Aviation Security Group (PNP-ASG); PNP-Tratfic
Management Group (PNP-TMG); Philippine National Railways Police (PNR Police); Civil
Security Unit-Air Transportation Office (CSU-ATO) and all other government agencies with the
primary duty and functions of providing transportation security maybe enlisted or deputized to

act as oversight auditors for the authority.

SEC. 20, Promotion and Selection Board, - There shall be established a Promotion and
Selection Board within the Authority which shall screen and evaluate its personnel for
promotion, The appointment and promotion process shall be in accordance with the Civil Service
laws, rules and regulations,

All positions in the PTSA shall be filled up in accordance with the Administration's
organizational structure, which shall define the qualification standards consistent with the
minimum requirements under the Civil Service Rules and Regulations.

‘The Chairman of the Board, in the interim and in the exigency of the service, shall
appoint the initial batch of Directors upon the recommendations of the PTSA Administrator.

Likewise, there shall be a Selection and Qualification Committee, which shall

recommend to the Administrator the appointment of all other personnel not provided herein.

SEC. 21, Headquarters, Offices and Location, - The principal office of the PTSA shall
be in Metro Manila, but it may establish regional or field offices as may become necessary for

the proper conduct of its business.

SEC. 22, Appropriations. - For the purposes of organizing and constituting the PTSA,
and to carry out the provisions of this Act, the amount of Five Hundred Million Pesos
(P500,000,000.00) is hereby appropriated out of any funds available or from any other sources
that may be identified for the purpose. In addition, the appropriations of the absorbed agency for
the current fiscal year shall be transferred to the Administration.

Thereafter, such amount as may be necessary to carry out the provisions of this Act shall

be included in the annual General Appropriations Act.

SEC. 23. Transitory Provisions. - The Office for Transportation Security (OTS) under
the Department of Transportation and Communications (DOTC) is hereby abolished. The
officials and employees of the OTS shall be absorbed by the PTSA on the basis of merit and
fitness and shall serve as the initial personnel complement of the Authority: Provided, That the
Administrator, the Deputy Administrator and the Directors that may be absorbed under this Act,


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shall initially be exempt from eligibility requirements of the Civil Service Commission upon
entry into the Authority; Provided, however, that the said personnel shall have at least one
hundred (100) hours of basic security training and at least two (2) years of extensive experience
in actual investigation, intelligence and security functions or assignments.

Officials and employees of the absorbed agencies may continue to serve in their official
capacity with the Authority without service record interruption; Provided, that they are qualified
and eligible for appointment in accordance with Civil Service laws, rules and regulations.

All existing facilities, equipment and all other assets, properties, rights, interest and
privileges which, upon the effectivity of this act, are vested in, and owned by, the OTS and such
other agencies performing transportation security functions that may be absorbed by the PTSA,
are hereby transferred to the PTSA.

All financial and logistical resources, facilities and equipment shall be released and put
under the control of the PTSA. All organizations and agencies whose functions are transferred to
PTSA shall disburse their funds and resources through the Authority.

SEC. 24, Implementing Rules and Regulations (IRR). - Within ninety (90) days from
his appointment, the Administrator shall promulgate the rules and regulations necessary to
ensure the effective implementation of this Act for the approval of the Board of Directors.

SEC. 25. Repealing Clause. - All laws, executive orders, letters of instructions, rules and
regulations and other issuances, or provisions thereof, inconsistent with any provisions of this act

hereby repealed or amended accordingly.
SEC. 26. Separability Clause. - If for any reason any provision of this Act is declared
unconstitutional or invalid, parts or provisions of this Act which are not affected shall continue to

be in full force and effect.

SEC. 27. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
at least two (2) national newspapers of general circulation in the country.

Approved,