THIRTEENTH CONGRESS OF THE 
5 
RUE 17 P53r 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
.
,
 
c 
2or31 
Senate Bill No. __ 
Introduced by Senator Luisa ‘‘Lei" P. Ejercito Estrada 
EXPLANATORY NOTE 
After more than two (2) decades, the laws governing the creation of the 
Philippine Coast Guard, defining its functions and powers and prescribing 
penal provisions for its violation are already worth revisiting. 
Republic Act No. 5173, which was enacted on August 4, 1967, paved the way 
for the creation of the Coast Guard as a major unit of the Philippine Navy. 
After several years, it was deemed necessary to organizationally modify the 
Philippine Coast Guard to enable it to discharge its functions more efficiently 
and effectively by consolidating functionally related activities of the Coast 
Guard into an integrated system to best promote safety of life and property 
at sea. 
Thus, on December 9, 1974, former President Marcos passed 
Presidential Decree No. 601 to further improve the Philippine Coast Guard 
by placing it under the direct supervision and control of the Secretary of 
National Defense. 
The present circumstances now necessitate the establishment of the 
Philippine Coast Guard as an attached agency of the Department of 
Transportation and Communications (DOTC) so as to promote maritime 
safety in order to obviate if not minimize marine accidents, to enhance 
maritime safety, to safeguard the marine environment and to maintain and 
ensure peace and order in the archipelagic waters, territorial seas and 
exclusive economic zone. 
Moreover, under the proposed measure, the Philippine Coast Guard shall 
now adopt a new organizational, operational and command structure; define 
the personnel administration professionalism, welfare and benefits of its 
members; delineate the pay and allowances for uniformed personnel and 
define such other matters which will further improve the aforesaid agency. 
Thus, the immediate approval of this bill is earnestly sought. 
LUISA “LOI’ P+JERCITO ESTFUDA 
Senator 


THIRTEENTH CONGRESS OF THE 
1 
’3 
RUG 37 P5:31 
Second Regular Session 
REPUBLIC OF THE PHILIPPINES 
) 
1 
6- 
S E N A T E  
Senate Bill No. __ 
Introduced by Senator Luisa “Loi” Ejercito Estrada 
AN ACT 
ESTABLISHING THE PHILIPPINE COAST GUARD AS AN ATTACHED 
AGENCY 
TO 
THE 
DEPARTMENT 
OF 
TRANSPORTATION 
AND 
COMMUNICATIONS, FURTHER AMENDING REPUBLIC ACT NO. 5 173 
ANDPD601,ANDFOROTHERPURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
CHAPTER I 
GENEML PROVISIONS 
SECTION 1. 
Title. 
This Act shall be known and cited as the 
“Philippine Coast Guard Act of 2005” 
I 
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 therefore reserves the use and employment of 
the same to Filipino citizens. 
The Philippines needs a balanced and healthful marine ecology, which 
shall (a) assure a sustainable growth and development of its bountiful 
marine wealth and other resources; (b) encourage the growth and 
development of sea transportation as a primary and vital link of the various 
islands of the archipelago; and (c) promote ecotourism by projecting 
internationally the pristine beauty of its natural sceneries such as white 
beaches, and other tourist spots. 
To attain these objectives, the State reaffirms its obligation to protect 
the maritime environment and commits itself to the following: (a) promoting 
maritime safety in order to obviate if not minimize marine accidents; (b) 
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enhancing maritime security; (c) safeguarding the marine environment; and 
(dj maintaining and ensuring peace and order in the archipelagic waters, 
territorial seas and exclusive economic zone. 
CHAPTER I1 
PHILIPPINE COAST GUARD AS ATTACHED AGENCY 
SEC. 3. 
Establishment. - The Philippine Coast Guard (PCG) is 
hereby established as a distinct, armed, uniformed, and seagoing service 
attached to the Department of Transportation and Communications. 
SEC. 4. Powers and Functions. - The PCG shall have the following 
functions: 
a) To enforce laws, promulgate and administer regulations for the 
promotion of safety of life and property within the maritime 
jurisdiction of the Philippines; 
b) To enforce laws, promulgate and administer rules and regulations 
for the promotion of the marine environment within the maritime 
jurisdiction of the Philippines; 
c) To render aid to distress persons and vessels and conduct search 
and rescue in case of marine accident or casualty within the 
maritime jurisdiction of the Philippines, including the high seas, in 
compliance with international maritime conventions; 
d) To enforce and assist in enforcement of fisheries laws, immigration 
law, tariff and customs laws, forestry laws, firearms and explosives 
laws, law on trafficking of women and children and all other 
applicable laws within the territorial waters of the Philippines; 
e) To enforce or assist in the maintenance of maritime security, 
prevent or suppress terrorism at sea and perform police function 
within the maritime jurisdiction of the Philippines. 
SEC. 5. Organization. - The PCG shall remain a sea going, distinct, 
armed and uniformed commiasioned service primarily responsible in 
enforcing this Act. 
Provided: That the PCG shall have the authority, 
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whenever appropriate, to utilize by agreement, the personnel, services and 
facilities of other departments, agencies and instrumentalities. 
SEC. 6. Composition. -a) The PCG shall consist of the following 
categories of officers and employees: 
(1) PCG officers 
(2) PCG enlisted personnel 
(3) PCG non-uniformed personnel 
(4) Probationary 2nd LL/Ensign; and 
(5) Midshipmen/women 
(b) There shall be a PCG Technical Service, herein established under 
Chapter 111 A, Section 9 (d). 
SEC. 7. Source of Uniformed Personnel.- The PCG shall procure its 
uniformed personnel from the maritime schools, other colleges and 
universities to answer the peculiar needs of the organization until such time 
that the PCG Academy is established. 
SEC. 8. PCG Trust Receipt. The PCG shall continue to collect fees, 
charges and fines, to include lighthouse dues, relevant to the exercise of its 
various regulatory functions, All income derived from collection of fees and 
charges and such other sources shall be retained and constituted as a 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 
lighthouses; Provided, That at least 30% will be used in the procurement and 
acquisition 
of 
communication 
and rescue 
equipment, armaments, 
ammunition, and as contingency fund 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; Provided Furthermore, That the PCG and the Department Of 
Budget And 
Management 
shall jointly 
issue 
guidelines 
for 
the 
implementation of this Section and the Trust Receipt shall be subject to 
accounting and auditing rules and regulations. 
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CHAPTER III 
A. ORGANIZATIONAL, OPERATIONAL AND COMMAND STRUCTURE 
SEC. 9. ' Organizational, Operational and Command Structure. - 
a) The PCG shall consist of uniformed and non-uniformed personnel 
with defined Coast Guard Table of Organization and Equipment, 
specialties, ranks, ratings, and plantilla positions; Provided, That in 
times of war as declared by Congress, the PCG shall be attached to 
the Department of National Defense as a support agency of the 
Armed Forces of the Philippines. 
b) The PCG shall be headed by a commandant who shall carry the 
rank of Admiral. Provided, That the commandant shall be 
appointed by the President from among the Flag Officers in the 
Coast Guard active service. 
The commandant shall have a 
maximum term of three (3) years. A commandant who has served 
for three (3) years prior to his compulsory retirement shall be 
considered as retired entitled to all the benefits available to a coast 
guard officer as if he compulsorily retired. Provided Further, that in 
times of war or other national emergency declared by Congress, the 
President may extend his term of office. 
c) The PCG Commandant shall have the following functions: 
1. Advise the President or the Secretary of the DOTC on the 
promulgations of executive orders, rules and regulations, 
proclamations and other issuances relative to matters under 
the jurisdiction of the PCG; 
2. Establish policies and standards for the efficient and effective 
management and operation of the PCG; 
3. Promulgate rules and regulations necessary to carry out the 
objectives, policies, plans, programs and projects of the PCG; 
4. Enter into contracts for the acquisition of floating air and 
sub-surface assets, real estate, communications equipment 
and other necessities relative to the performance of its powers 
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and functions subject to the limitations of existing laws, rules 
and regulations; 
5. Receive grants and other forms of assistance from other 
countries in support of PCG continued development and 
modernization projects subject to existing laws; and 
6. Perform such other functions as may be provided by law or 
appropriately assigned by the President or the Secretary of 
the DOTC. 
d) There shall be a PCG Technical Service to be composed of medical 
doctors, dentists, nurses, lawyers, veterinarians, chemists, marine 
biologists and chaplains, including personnel whose pre-entry 
required course are closely related/allied to the aforementioned 
professional group. Appointment of all PCG Technical Officers shall 
be in the initial rank of COAST GUARD ENSIGN except for the 
following 
field 
of 
occupational 
specialties: 
dentists 
and 
veterinarians whose initial appointment rank shall be COAST 
GUARD LIEUTENANT JUNIOR GRADE; and lawyers, medical 
doctors and chaplains whose initial appointment rank shall be 
COAST GUARD LIEUTENANT SENIOR GRADE. 
SEC. 10. Major Units of the PCG.- The PCG shall maintain its 
present organization, composed, of a Headquarters and its Support Units, 
Coast Guard Districts, Coast Guard Stations, Detachments and Clearing 
Outposts, as well as the Coast Guard Operating Forces, Marine 
Environmental Protection Command, Coast Guard Education and Training 
Command, and Aids to Navigation Command. Provided, That it shall have 
the authority to reorganize, 'as it deems necessary to be responsive to the 
needs of the country and be able to carry out its mandate effectively and 
efficiently. 
B. PERSONNEL ADMINISTRATION, PROFESSIONALZSM, WELFARE AND 
BENEFITS 
SEC. 11. Appointment. - a) Appointment of all PCG officers shall be 
approved by the President of the Republic of the Philippines through the 
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Secretary of DOTC. No person shall be appointed as a PCG officer unless 
he/she is a holder of a baccalaureate degree, preferably a licensed 
professional, and/or a graduate of Service Academies. 
b) Appointments and promotions of all PCG enlisted personnel shall be 
made by the Commandant of PCG. 
c) Appointments and promotions of all non-uniformed personnel shall be in 
accordance with the Civil Service Law, rules and regulations. 
SEC. 12. Promotion of PCG Officers. - a) The Commandant of PCG 
shall recommend to the Presjdent, through the DOTC Secretary the 
promotion of PCG Officers who are best qualified for appointment to be 
submitted by the PCG Officers Selection and Promotion Board. Provided: 
That he/she must have completed the required schooling and training 
relevant to said grades/rank “in position”, and must have complied with the 
prescribed minimum time in grade based on approved PCG rules and 
regulations and other relevant law. Provided Furthermore, That pendency of 
any administrative or criminal case before any court, body or tribunal shall 
be a bar for promotion. 
That special or meritorious 
promotion shall be extended to any PCG Officer for acts of inconspicuous 
courage and gallantry involving risk of his life above and beyond the call of 
duty. 
Provided finally, 
b) 
Promotion of PCG Enlisted Personnel and Non-Uniformed Employees. 
The Commandant shall promote PCG enlisted personnel to the next higher 
rank based on the recommendation of the PCG Selection and Promotion 
Board for Enlisted Personnel. The promotion of non-uniformed employees 
shall be governed by Civil Service Law, rules and regulations. Provided, That 
no PCG Enlisted Personnel shall be eligible for promotion to the next higher 
rank position unless he had successfully passed a corresponding 
promotional examination. He must have completed the required schooling 
and training relevant to said position, and must have complied with the 
required minimum time in grade based on approved PCG rules and 
regulations and other relevant laws. Provided Further, that the pendency of 
any administrative, criminal or civil case before any court, body or tribunal 
shall be a bar for promotion or assignment. Provided Finally, that special or 
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meritorious promotion shall be extended only to any PCG Enlisted Personnel 
for acts of inconspicuous courage and gallantry involving the risk of his life 
above and beyond the call of duty and/or outstanding achievement in the 
Coast Guard service as determined by the PCG Selection and Promotion 
Board. 
SEC. 13. Retirement. - Officers and enlisted personnel, who have 
attained the age of fifty-six (56) or has thirty (30) years of accumulated 
government service, whichever is later, shall be retired compulsorily from the 
service. Prouided, That officers and enlisted personnel who has served at 
least twenty (20) years of satisfactory active service, shall be allowed to retire 
optionally, at his own request and with the approval of the President of the 
Philippines, and the Commandant, PCG, respectively, and shall be entitled 
to receive benefits provided by law. Their retirement benefits and pensions 
shall continue to be covered by the AFP Retirement Law until such time that 
the PCG is able to establish its own retirement system and develop health 
and welfare programs for its personnel. 
SEC. 14. 
Separation. - Officers and enlisted personnel who 
voluntarily resigns or otherwise failed 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 resigns shall be entitled to a separation pay 
equivalent to one (1) month salary for every year of service in addition to the 
commutation of all the accumulated leaves to his credit. 
SEC. 15. Retirement Benefits. - Monthly retirement pay shall be 
sixty five percent (65%) of the base pay and longevity in case the retiree has 
rendered at least twenty (20) years of continuous active Coast Guard service 
increasing by two and one-half percent (2 %) for every year of actual Coast 
Guard service rendered beyond the initial twenty (20) years of service and 
ninety percent (90%) for thirty six (36) years of active Coast Guard Service 
and over. Provided, That the retiree shall have the option to receive in 
advance the lump sum of his retirement equivalent to the first five (5) years 
of his 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 
7 


his retirement. Provided finally, that the retirement pay of all uniformed 
members shall be subject to the prevailing scale of base pay of members still 
in the active service. 
SEC. 16. 
Career Development (Education and Training). - 
Commissioned Officers appointed to the COAST GUARD Service -shall 
undergo the required career and professional courses to ensure that they are 
professionally competent and, be qualified for the assignment following a 
certain career pattern. 
SEC. 17. Assignment. - Immediately after they are commissioned to 
the service, they shall be assigned in a position appropriate for the initial 
entrants. Provided that, individuals who have met the standards of the 
organization and accepted on a probationary basis, shall be primarily 
assigned with an office, unit or position needing his professional training 
and experience. Provided further, that a skills inventory shall be undertaken 
in order to match the qualification, training and expertise of commissioned 
officer with their assignment, and to be made as a basis for the procurement 
of additional officers. 
C. DISCIPLINE AND ORDER 
SEC. 18. Disciplinary Actions. - In dispensing discipline and order 
among PCG officers and enlisted personnel, the PCG shall continue to adopt 
the Military Justice System in accordance with the provisions of C.A. 408 as 
amended with Commandant of the PCG as the convening authority, until 
such time that the PCG has adopted an appropriate justice system that shall 
govern the organization. 
CHAPTER IV 
PAY AND ALLOWANCES FOR UNIFORMED PERSONNEL 
SEC. 19. Duty Hours. - 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. 
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SEC. 20. Salary Scale. - The PCG shall have a salary scale separate 
and distinct from other agencies of the government to attract the best and 
the competent in the Coast Guard Service. 
The salary scale shall be 
reviewed every three (3) years or depending on economic fluctuations 
necessitating progressive adjustments thereof. 
Provided, That all 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. 21. 
Criteria for Salaries. - PCG personnel’s salaries shall 
correspond to the following criteria: 
a. Salary shall ensure that the lowest in rank and position receives 
an amount which will enable him and his family to afford a 
reasonable and decent standard of living; and 
b. Basic monthly salary shall exclude the subsistence allowance, 
cost of living allowance, quarters allowance, clothing allowance, 
hazard pay, amelioration pay, health care pay and all other 
allowances as may be provided by existing laws. 
SEC. 22. Cost of Living Allowance. - PCG personnel’s salaries shall 
keep pace with the rise in the cost of living which shall automatically follow 
changes in cost-of-living index as determined by appropriate government 
agencies. 
SEC. 23. Special Allowances. - In areas wherein PCG personnel are 
exposed to hardship or other hazards usual to the performance of its 
mandated functions and established to be peculiar to any given area or place 
of assignment, as determined by the PCG, he shall be compensated with any 
of the following special allowances: 
a. Sea Duty Pay, PCG personnel performing actual duties on board 
PCG vessels shall be entitled to a sea duty of fifty percent (50%) of 
their basic monthly pay. 
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b. Instructor’s Duty Pay. PCG personnel performing duties, as an 
instructor shall be entitled to instructor duty pay of thirty-five 
percent (35%) of their basic monthly pay. 
c. Special Counsel Pay. PCG personnel performing duties that are 
within the definition of the term “Practice of Law” shall be entitled 
to Special Counsel Pay of Fifty Percent (SOYO) of their basic monthly 
Pay. 
d. Aviation Duty Pay. PCG personnel performing actual duties with 
the Coast Guard Aviation Group shall be entitled to an Aviation 
Duty pay of fifty percent (50%) of their basic monthly pay. 
e. High Risk Duty Pay. PCG personnel performing actual duties which 
may be classified as high risk by his respective unit commanding 
officer and affirmed by the CPCG shall be entitled to a High Risk 
Duty pay of fifty percent (50%) of their basic monthly pay. 
f. Hazardous Duty Pay. PCG personnel performing duties which may 
be classified as hazardous by his respective unit commanding 
officer and affirmed by the CPCG shall be entitled to a Hazardous 
Duty Pay of fifty percent (50%) of their basic monthly pay. 
SEC. 24. Other 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, hazard pay, 
laundry allowance and other allowances as may be provided for by law. 
SEC. 25. Longevity Pay. - PCG personnel shall be entitled to a 
longevity pay of ten percent (10%) of their basic month 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 maximum longevity pay shall ,not exceed fifty percent (50%) of the basic 
monthly pay. 
SEC. 26. Educational Benefits. - The PCG shall formulate plans to 
improve the educational qualifications of PCG personnel and their 
dependents in accordance with existing laws, rules and regulations and/or 
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in the absence of said laws, rules and regulations shall recommend to 
legislative bodies the enactment thereof. 
SEC. 27. Housing Assistance Program.- The PCG, in coordination 
with appropriate government agencies shall establish a special housing 
assistance program for PCG personnel with the objective of ensuring that 
every personnel has a dwelling that is structurally sound, environmentally 
safe, affordable and located in a wholesome community. The PCG shall 
likewise be part of and be covered by any housing program of the National 
Housing Authority. 
SEC. 28. 
Compensation for Physical and Mental Disability 
Sustained in the Course Pay.- PCG personnel shall be protected against 
the consequences of employment injuries. 
Physical and psychological 
stresses on the member’s health are recognized as compensable 
occupational diseases, in accordance with existing laws. 
SEC. 29. Permanent Physical Disability. - A uniformed member 
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 Coast Guard 
service shall be compulsorily retired. Provided, That upon his compulsory 
retirement, he shall be entitled to a retirement pay pursuant to Section 15 of 
this Act. 
SEC. 30. Disability Benefits. - Any member and his dependents 
shall be entitled to all benefits relative to the member’s permanent 
incapacity, as may be provided for under this Act or existing laws. 
SEC. 31. 
Leaves. - In addition to leave privileges enjoyed under 
existing laws, PCG personnel shall also be entitled to the following: 
a. Study leave, with pay not exceeding two (2) years, Provided, that no 
grantee shall be allowed to accumulate more than two (2) years of 
study leave except when he needs an extra semester to complete 
and defend his thesis for a graduate study in degree relevant to his 
being a member of the Coast Guard service. 
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b. An indefinite leave of sick absence which shall be granted to an 
ailing member whose medical treatment requires more than one (1) 
year of continued treatment. 
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. 
Leave shall accumulate and any part thereof which may not be taken 
within the calendar year earned may be carried over the succeeding years. 
Whenever uniformed personnel retires, voluntarily resigns or is allowed to 
resign or is separated from the service through no fault of his own, he shall 
be entitled to the commutation of all the accumulated leaves to his credit. 
SEC. 32. Exemption from Attachment and Taxes. - All benefits 
granted by this Act, including benefits received from any government 
insurance agenciesldorporations, shall not be subject to attachment, levy, 
execution or any tax of whatever nature. 
CHAPTER V 
TRANSITORY PROVISIONS 
SEC. 33. 
PCG Reserve Force. - There is hereby created a PCG 
Reserve Force in support of active component of the PCG to augment the 
same upon mobilization in times of war and national emergencies arising 
from calamities, disasters including relief and rescue operations and other 
activities requiring civil assistance. 
Recall authority is vested to the 
Secretary, DOTC and to the President of the Philippines. 
SEC. 34. Organization of PCG Authority. - The PCG may organize 
and train a civilian volunteer organization known as the PCG Auxiliary, 
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 and its 
resources, the conduct of maritime search and rescue, and the maintenance 
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of aids or navigation and such other activities that enhance maritime 
community relations which include civic action, youth development and 
related activities. 
CHAPTER VI 
FINAL PROVISIONS 
SEC. 35. Appropriations. - The existing budget of the PCG provided 
for in the Annual General Appropriations Act shall remain as is without any 
additional amount. Provided, That the Philippine Coast Guard shall prepare 
its own budget as Key Budgetary Unit (KBU) being an attached agency of the 
Department of Transportation and Communications. 
SEC. 36. Implementing Rules and Regulations. - Within ninety (90) 
days from the effectivity of this Act, the Secretary shall promulgate rules and 
regulations necessary to ensure the effective implementation of this Act. 
SEC. 37. Separability Clause. - If any portion or provision of this Act 
is declared unconstitutional, the same shall not affect the validity and 
effectivity of the other provisions not affected thereby. 
SEC. 38. Repealing Clause. - All laws, decrees, executive orders, 
rules and regulations and other issuances or parts thereof which are 
inconsistent with this Act are hereby repealed, amended, or modified 
accordingly. 
SEC. 39. Effectivity. - This Act shall take effect fifteen (15) days 
following its publication in two (2) national newspapers of general 
circulation. 
Approved, 
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