transportation of garbage; and generate job opportunities.

Republi¢ of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS,
First Regular Session

HOUSE BILL No. 3685

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT
RESTRUCTURING THE PHILIPPINE NATIONAL RAILWAY SYSTEM, CREATING
THE PHILIPPINE RAILWAY AUTHORITY. THE PHILIPPINE RAILWAY
CORPORATIONS, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

‘The establishment of a national railway system is the solution to the congestion and
pollution ‘of the metropolitan areas and the traffic problem in the major urban centers all over the
country. It will provide cheaper} faster, safer and reliable mass transport system; facilitate the
movement of people, goods and services; decongest the metropolis; depollute the metropolitan
areas; enhance agricultural productivity; encourage investments and accelerate industrialization;
enhance tourism in the countryside; promote inter-regional trade and commerce; decentralize
development to the rural areas; reduce, national dependence on oil imports; reduce the
importation of vehicles; reduce the cost of road maintenance; facilitate the collection and

The national railway system is essential to the development of a country. An efficient,
reliable and convenient railway) system provides the necessary mobility and efficiency. ‘to its
passengers. It also facilitates the movement and trade of goods’ and services. Although the
Philippines has operating railways ~ in terms of tracks covered in'kilometers, the number of
working trains coaches, and the areas reached by the railway system — the country falls far

‘ behind in contrast to its neighbors, Further, the deficiency is, made worse by the fact that there is
regulatory chaos since there is no central authority regulating the Philippine railway system

__ Itis high time for the Filipino people to reap the foregoing benefits that they have been
long denied of. A national railway industry in the Philippines will accelerate national progress
and prosperity and|ensure our country’s global ‘competitiveness. The enactment of a National
Railway Act has been over-due long before the food and fuel crisis that many countries of the
whole World now suffer. The Act will ensure an efficient and effective mass transport system
nationwide that will facilitate the movement of people, goods and services around the country

In view of the foregoing, the early passage of this bill is earnestly sought.

“KUYA” JOSE/ANTONIO R. SY-ALVARADOW
£ Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

bs s+“ EIGHTEENTH'CONGRESS
First Regular Session

HOUSE BILL No. _3685

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO

H AN ACT
RESTRUCTURING THE PHILIPPINE NATIONAL RAILWAY SYSTEM, CREATI
THE PHILIPPINE RAILWAY AUTHORITY. THE PHILIPPINE RAILWAY
CORPORATIONS, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
: PURPOSES

be enacted by the Senate and the Howse of Representatives ofthe Philippines i
Congress assembled.

oh ARTICLE I

. GENERAL PROVISIONS

SEC. 1. Title. ~ This Act shall be known as the “Philippine National Railway
Restructuring Act of 2017”.

SEC. 2. Declaration of Policy ~ It is the policy of the State to utilize railway systems as
} an instrument for national progress and prosperity. Toward this end, it shall be established a
nationwide railway system that is cost-effective, ‘safe, reliable, efficient, state-of-the-art,
accessible, sustainable and compliant with international standards.

: soaey ARTICLE I
f PHILIPPINE NATIONAL RAILWAY DEVELOPMENT AUTHORITY

i SEC. 3. Creation of the Philippine National Railway Authority, ~ There is hereby created
a ‘body. corporate to be known as the Philippine National Railway Authority (“PNRA”),
hereinafter referred to as the Authority which shall have the attribute of perpetual succession and
shall. be vested. with the powers of a corporation. It shall establish its principal office in
Metropolitan Manila, unless otherwise provided | by the Authority, and may put up branches as
may be necessary. i

es ry preneee ara teen ie

SEC. 4. Mandate, ~ ‘The ‘Authority shall HI"fegulate all all aspects of the operations of the
Railway. Corporations, presently operating, those created under this Act, as well as such other

’ yailway corporations which may be established in the future. Said mandate of the Authority shall

apply to railway entities owned and/or operated either by government or by the private sector.

' . SEC, 5. Powers of the Authority. — As a ‘corporate body, the Authority shall have the
1 following powers, duties and functions: :

(a) To succeed in its corporate name, to sue ‘and be sued in such corporate name and to
i 4 adopt, alter and use a corporate seal which shall be = judicially noticed;

(b).To adopt, amend, and mie its By-Laws, |



© ‘To enter into, make perform and carry out contracts of every class and description which

yy are necessary and incidental to the realization of its. purposes with any person, firm or

© -¢prporation, private or public;

(@) To acquire, own, hold, administer and lease such real and personal properties as it deems
necessary or convenient in governing its affairs and to encumber, lease, mortgage, sell,
alienate or otherwise dispose of the same except its right-of-way;

(@) To enter into any ‘obligation, assign or. accept the assignment of and rescind any

digi Sgreement or contract necessary or incidental to the proper functioning of the Authority;

(f) To prescribe, fix and regulate the scheduled, frequency and route of railway services;

(g) To privatize any part or all of the railway system or any sub-system under the supervision

“ and regulation of the Authority, with the prior approval of Congress, and to permit the
Party that.acquires the system an authority to operate the same subject first to the grant of
+ a’congressional franchise;

(b) To: formulate and adopt’ a master plan for a modern national railway system with

J!) ecological and environmental standards;

A To, order.the cessation of operations or any and all activities related to the railway system

upon the. recommendation of the concerned railway safety/security officer;

Gy fo,call_upon-any: gqvernment agency or, instrymentality for moh assistance as maybe

| Necessary in the discharge of its duties and functions;

ak & fa promulgate, ait rules.and. suitors as,may he necessary to carry qut, the objectives

i Othis Act,

() 0, Peo ae other poyvers a as smay

Sth ee

e necessary to carry out the purpose of this Act.”

“ aierien or." fens
RAILWAY STANDARDS:

“In Ofder to 10 Sustain’ the development of the ‘railway industry, enhance

tems and € ensure the spfety and security of the railway riding public,

¢ them, from any form of natural cqlamities arid man-made disasters, the Board shall set

Hy, Foutes,. fares, and S| dards on. safety and security, and facilities for the easy access

is. with’ gsabilities (PWD) ‘and senior citizens, to be observed by all railway operators,

iblic of private. The fare and standards on m safety and security myst be compliant with
dest aestee

Ho.

SEC Rules ard Rewari
: fol wil f

tis -@) Baitorn ‘ganjdards anid Specifcat ms sas spect to: cling stock, track and structural
+ fabilities and other railway equipment and apparatus, *
* (p) Gpnstrici{On; maintenance, repair and removal of rack and structural facilities,
{¢) Perimanent'and temporary fencing of right-of-way and structural facilities including the
apportionment of costs in relation thera
(d) Track crossing and its usages, ss 1p se
(g) Installation and_ use, of signage, “warming, signals. barriers, operating signals and other
“> similar apparatus; eB
(f), Qiialifications; of: Persons, operating rolling stock and of persons carrying out functions
‘1 fggarding'the’' operation ' of. track, and oF ther equipment and matters ancillary to the
‘hoy tion Of falling ey

way systen
é) Tariff, rates arid ‘othe? fees and hari,
way, security and safety: and



ARTICLE IV
aH BOARD OF DIRECTORS

sec. 8. Board of Directors; Composition. ~ The powers and functions of the Authority
shalt | be: exercised through a Board of Directors, hereinafter referred to as the Board, to be
omposed of five: (5)'members:. the secretary’ of the Department of Transportation as the
*hajrman, the three'(3) general managers Of the railway Corporation, and one (1) member from
the 'priyate ‘sector appointed by the President (of the Philippines, for a term, or terms, in
ordance to Repilie Act (RA) 10149. 4
“
Members of the: Board shall receive a per dieyn of not more than ten’ thousand pesos (Php
,000.00), or as otherwise set by the Department of Budget’and Management, for eyery board
Ipectingy: ‘Provided: however, ‘hay the fer ‘diem collected per month does ‘not ‘exceed the
‘equivalent four 4) reelings
fee

@ Determine the organizational stryctyre, ofthe Authority, ‘define the duties. and
) Fesponsibilities' of all affigjals, and employees ppd.adopt a compensation and benefit
oe that shall be subject to the approval of the Governance Commission on
TAMENs; Owned and, Controjled Corppratigns (GCG); hus
real allel FO. hp, fied Jeg an atone Adin of the
Faye pal Si: Agi al this mn ait
ieee plans and pibists and prow

St.finaneial an! eperstions targets fer MANAGE, a th ‘basis far
oni PAR, \RATPATAIR Performance,
‘Authorize sych expenditures for the eae ane efficient administration and operations
intent the Authority) ad 5, Ge igen Had tee Thay ane peo
| Submit ap. ‘AaDR report Hieloperaian of ji Anthony. ¥y hg Secretary
the), President iof the Philippines, Senate; President. af he; Philippines,, and
ker of ues HSE of Representatives;
the Board -- The Board shall meet regularly once every month at its principal
HEAP Ly EH ieee eae Board, sent thrapeb electronic, or
sforg. fald mentiqg. the, Bo s

TRADE 2
inet special ‘meetings et ee 4 acne

cus Actaiority of the, members, shall, constitute a quorum, for, the transaction of corporate

‘ 25 3 i ny oven de i ata Y be of the members present, at which there
g “Bact, except for the eleetion of offigers, which

8 Aalst maps of the Ppara

el tlh hy

‘iss ‘rol aera yt otaneds egret Maton me
AIST PAREN ae ALTRORITE: eet
Pigladiy tral sey lafihe Operdtibns and managentent of
ennui, fat Adupinistratgy, with the rank. and, privileges of an
ap ie ub eas Chief Executive Officer of Ppt He ‘shall. be
nsible <i an Pe uns of the Authority'as yell as for

aH an a tt ee

il
day of ives appojnunett, pt
hom ae

ippings, at ess
x {nok character and witl
oat ansportation, ‘ business



sgement, finance or Flaw, He, shall be appointed by the President of the
iGio ‘he ae for ajerm or terms, i ieconjdanee with RA 10149.

i and, Respops lites of the ‘Adninisirator. fe - The Administrator of the
egpeitoliawing 4 ies and. respons aes ‘

measures approved by the Board: |
inistration of the Authority insofar as

mae 4g deal, with any, persons and entities, public or
‘ic. or foreign ‘on matters related to the mandate of the Authority;
pce ahd supplemental budgets of the Authority; and

und; including ie jeans of access;



(g) To own or operate railroad trainways and subways for the purpose of transporting, for
consideration, passengers, mails, and property between any point in their respective areas
of operation through the use of railways; and

(h) As an auxiliary to its main purpose, to own and/or operate powerhouses, hotels,
festaurants, terminals, warehouses, timber concessions, coal mines, iron and other
mineral properties, and to manufacture rolling stocks, equipment, tools, and other
appliances; to construct and operate in connection with its railroad lines, toll viaducts, toll
tunnels, and the like.

Further, the assets, liabilities, powers, and functions of public railway entities, which are
owned by the government, shall, upon effectivity of this Act, be transferred and absorbed by the
appropriate railway corporation, and all such public railway entities shall be deemed abolished

SEC. 15. Authorized Capital Stock of the Railway Corporation. ~ The authorized capital
stock of each Railway Corporation shall be pnd Billion Pesos (Php 30,000,000,000.00)

e even national or local, within the framework of their respective charters, twenty percent
(20%), af which, or, Six Billion. Pesos (Php 6,090,000,000.00) shall be* initially paid-up and the
balance shall be paid ffom a continuing annua) appropriation of not less than Two Billion, Pesos
(Php 2,900,000,000,00), which jis hereby appropriated. The said amount shall be programmed
, Department of Budget and Management (“DBM”) in accordance with the

i v0 Billion Pe
‘and’ the ite nd, elease. thereof shall, remain. in, force until fhe. authorized. capital
subscribed by the Government shall have been paid in full.

3EC. 16. Beard of Directors, ,Campositiqn, and Appointment. ~The corporate powers of
‘Railway Corporation shall b din the Board composed, of seven (7) Directors. The
‘Undersecretary from the DOTr, shall be the Chaigperson and the Secretary of Finance shall be the
Co-Chair, both acting ‘in their ex-officio capacity. The remaining five (5) members shall be
appointed by the President for aterm, or terms, a i dance. with RA, 10149.

snber%08 the Bagrd shal negive.a pen djens of na} more than te thousand pesos (Php
00,00),i0r as gthepwise decided by, the. DBM, elie board meeting: Provided, however,
tbat thesnene ies eae a a ‘Apes not exces ete equivalent four (4) meetings,

ra “air

ations ‘of -Appointive Members of the Board. = The appointive members
ES ot tbe in of | Directors Shall-be Filipino citizens, at least thirty-five (35) years of age at the
«Hime of their apgintments, and holders ¢ degrees i 1 the fields of transport planning, engineering,
; reper. management, finange, marketing, law, or relaled course, with preference for, those
‘ 1. such ‘fields ‘or Work. experience’ in railway management and operations
Y sete mys De fssideotsint the. plage wheré the; respective

if pn ice, for, business, at least one (1) year prior tq
their. espe fa “persons of good moral character, competent,
‘and experienced in’ One ‘or more of the following fields: transport planning, engineering.
economics; mana: corporate law, or marketing, 2

"The Board of Directors shall

appoinig,

‘To preséribe: arnend, or repeal’ by-laws,rules and mien ‘or poligies paverning the
h,



Hf
? Controlled Corporations (Gc), and to appoint and fix the ‘compensation of the other
3 piers ofthe Corporation;
'o approve, the annual and/or such annual supplemental budgets of the Corporation;
By a two-thirds (2/3) vote of all members, to recommend to the President the suspension
or removal for cause of the General Manager or Assistant General Manager(s);
Upon the recommendation of the General’ Manager, to approve the appointment of all
. Officials of the Corporation from the rank of division head and above;
Subject to'the: provisions’ of applicable laws and regulations, and upon recommendation
of the General Manager, to reorganize the Railway Corporation, determine its staffing
Pattern, of define the functions and duties of organization units and personnel; and
{Co expropriate, with rightful compensation, in accordance with RA 10752, the necessary
(0 Tight-of way) needed by the Corporation to acquire, maintain, and/or expand its track
lines. i:

eneral Manager of the Railway Corporation. ~ The management and day-to-day
perations of each Railway, Corporation shall be, vested in;the General Manager, who shall: be
‘appointed by the President Of the Republic of the Philippines, upon ‘the recommendation of the
Board of Directors of said Railway Corporation, The; General Manager shall possess technical
\feompetpnee in manapeen preferably’ in railroad transport, management, have. demonstrate
execu, g, ability, and be, of Zood moral character. The General Manage 5 shall hold office for a
a me la (8) yea :

ie ine ahd”jo participate in its
a0 Preside in any meeting for or in the absenge of

"deliberations, \
the Chairman,
©) To recommend to the Board short-and-long range plans and programs consistent with the
overall objectives of the Railway Corporation;

4), ‘To. submit, and recommend consolidated annual budget and, propose capital and, other
op sign #PRlemental, budgets tot Boardainy ayes fe Hae sa ecu ga ol oalliog

of do appoint officials and employees below:the rank of a, division head ahd to suspend of
‘otherwise discipline for cause, all subordinate officials and employees of the Corporation;
s1e-Provided, however, that in the. fas of ramyal:f for, cause, approval of-the Board shall be

i

jecessary’
5 an io the Board such changes in the organizational structure and staffing
terns of the Corporation as may be necessary to carry out its functions effectively;

a vo submit to, the President of the Philippines, the Senate President, and the Speaker of the
isygy House of Representatives, within sixty (60) days after the close of each fiscal year, an
“+ annual report'on the operations of the Railway Corporation: or such other reports as may
) be.required;and

i} Tp perform’ such othér difies as ‘nas! “be'aSsigned to him by the Board of Directors from
time to tip; ‘

emption from Taxes, Duties,:Port' Charges or "Die ied 'Customs Boris, “Th
Railway:Corporations hereby created shall be exempt from the payment of all taxes of any kind
vand'nature such'as those imposed by the municipal, ‘city, provincial, or national government
© including the, Value-Added Tax (VAT), upon its capital stock, franchise, right of way, earning,
{and all'other Property ‘owned or operated by it in Felation to its principal and auxiliary purposes,
ve ands go dygest way, materials rlling stocks, spar: parts, supplies and equipient
for. and/or™ Ch the; Railway, Corporation: Provided, ‘That’ this



‘exemption shall extend to ‘warfare ‘dues, storage! chars: arrastre, and shipside charges, and
-Specia] duties on such importations, and other port charges upon the carrying vessels whose
“entire cargo consists of materials for the construction of its projects or rehabilitation of its lines,
* facilities, and to such proportion of the prescribed port charges on other vessels as the tonnage of
aterials for such:construction or equipment may bear to the tonnage of the entire cargo of the
Provided, further, that such exemption shall further. extend to the filling of general
jorterst:and:: general:idocumentary’: bonds! andi:warehouse.'bonds® for the operation of its
yrehouses, whether general bonded warehouses or:general order store.

i SEC: 22. Audit Personnel. ‘and Report. —

a) Petsonnel ~ The Commission on Audit (-COA") shall appoint an Auditor for each of the

RE _Rallway Corporations, and the necessary personnel to assist said representative/s in the
{: performance of their respective duties..The number and salaries of the ‘Auditor/s and said
i E: pepsonnel shall be determined and paid by the. 00h i

) Report —-Thefieports of: ia of e saat fiscal year, by the: Auditor of the Railway
Cerporations. he assigned to, to the Board of Directors of the Railway Corporation, and
‘eopies thereof shall be furnished the President of the Republic of the Philippines, the
th sere §. Transportation, ‘Senate.President, of the Philippines, and Speaker of the

eof The. report. shal}..set forth the, scope of the audit and shall
teme} 8 and liabilities, capital and surplus or deficit; a statement and
of defigit analysis; statement of incqme and expenses, a statement of sources and
application of funds; and sych comments and, information as may be necessary, together
with, such recommendations, with respect thereto as may be advisable, including a report
rgofany,impairment, of capital noted in the auditushe, report shalll,also. show, specifically
ees @0Y; program, expenditures or pther, financial transaction. or undertaking, observed in the
course. of the ‘audit, which’in the opinion of the Auditor, has been carried on or made
or ywathout authority or, Jay, 1
aaa

= When its, term, of istenie has expired in accordance with the
of this Act, the Railway Corporation shall nevertheless, continue as a body corporate
for threg. (3) years. after, the time of its dissalution for the, purpose of prosecuting:and defending

ts: oy of.against it and.of enabling it gradually tq settlg.and close its affairs, to dispose of any
rand convey its properties, bu not for, the Purpose of continuing the business for which it was

uc pa eds

Bai

vas 2% Right lyons and Disturbance Fee, =; A railway operator or his authorized agent,
including the Railway Corporation herein created, bring ig in equipment and materials to a piece
pair, may gain access to such land to, construct or maintait
structural esis of a public Failway, subject

as, serie



Wiadequate passages, and’on the ‘completion ofthe construction restore the highway to it
pale passable condition.

SEC: 28. Crossing Construction. — Subject to the approval of the Authority, the owner of a
private; road may be allowed to construct and maintain at his own cost, either an underpass or
pyetpass’crossing. across the right-of-way that already existed prior to the construction of his
ivate road. However, if the private road was in existence before the rail right-of-way was
established, . the; railway ‘umesloperator is esponsible for. the cost of constructing and
mpaingaing the crossing. fe .
Z SEC. 29. Crossing of Landowners. ~ Any ‘proponent ‘of a railway project shall provide an
“access road in between lands cut crossed by the Project when public interest so demands.

SEC: 30: Ci ost. When a railway operator is dinable to agree with the road authority as to the
cost.apportionment associated with the Construction of Projects under this article, the parties may
fod to arbitration. i

£ secS'31, Fencing of Railway Track’ The'operators of railway systems when public safety
3 ‘demands as faa ‘be determined by the Authority, shall’ provide t the: necessary fences along

% racket

bie “SEC. 32. Drainage. — In the constraction of railways, the Authority shall ensure that
( apprppriate and adequate drainage and sanitary , facilities are Provided. No. construction of
railways shall be allowed by the Author without s

adopt. way

h Means to protect, their. systems and
S from fire.or damages a arising there from,

“ SEG: 34, Stoppage. — When the, construction or work poses danger to person or property, the
© Safety , Officer, may. immediately order the stoppage: of the. construction or, work unless
constrained by the Authority, 4

MASG Pact ate

oo Aad
pat ti ack vai
PO RIGHT-OP-WAY

yen’

_ herein greated, shall. dent and, establish, withip.three, (3) years after the approval of this Act,
alignment of: aiNational Railway, System and once established and the right-of-way is
ah the same shall'not be te object of any sale, lease or other forms of disposition.

y ‘intrusion into the right-of-way by any
under Section 92, Article XXVII hereof.

“exensnnG AND. SV ERRIDINGE i
* “SS OBJECTIVE: OF ‘ONSTRUCTION' *

‘The. Railway: Corporations herein created may initiate the
cigs expror It ation peers to carry out the objectives of this Act.

‘Any person or group of persons who enter, intrude, occupy, settle,
possess, ‘construct into ‘the railway alignment or,rigl

railway office or controlled corporations, or, loca}, government units (LGUs) agency shall be

1 gonsidered as nuisance per-se:and shall be summarily ejected from the premises such entry,

struction sal be considered as a criminal



“SEC; 39. Suspension. — When the construction or work in a railway project is not being
Carried out in accordance of the approved specifications relative to design and product standards,
the Safety, Officer may order the suspension of the construction or work until after correction
«shall havgibeen made by the contractor or its resumption is ordered by the Authority.

- ‘SEC. 40, Prohibition Against Issuance of Restraining Orders and Preliminary Injunctions or
‘st: <Preliminary, Mandgtory Injunctions. — No. court iy the Philippines, except the Supreme Court,
shall have! the juri y restraining order, preliminary injunction, or preliminary
injunctjon in any case, dispute, or controversy involving any contract or project being
implemented by the Authority, to prohibit any person or persons, or entity or government official
from proceeding with, or continuing the execution or implementation of such contract or project,
‘pursuing any lawful activity necessary for the execution, implementation or operation of such
railway Pproject/system, i

ARTICLE X
7 RAILWAY PFERATIONS

"created, a ensure that the track and other railway facilities are constructed, operated and
mainfajned.in accordance with this Act, pertinent ules and regulations implementing the same
policies that may,be promulgated by the Authority and the Railway Regulatory Board and
sa one seek is, maintained. and operated in, accordance with applicable rules and

SEC: ‘42. suspense and Termination, - Any, operator of a public. or industrial railway,
hy

guiding Corporations herein. ‘created, who, intend. to,suspend or terminate its
'“gperation shall, within; six (6), ‘months, prior. to the suspension or termination, give notice thereof

wep
ue" ARTICLE XD
SAFETY AND SECURITY OFFICERS

"SEC, 4B. Safety Officer. — The, Railway ‘rotation, shall have Safety Officers with the
tf “omnes duties and functions:

raduate. Sof a course related to’ railway safety"and ‘passes the examination given by, the
aoe Regulatory Commission for the purpose. ©»

a 5 Advise and. foster faithful complian Hh
1d operating: ae and regulations; Goa

allway, security. legislations, approvals

ne



if gah WA

f eral riding public and of persons employed by or acting on
fe ators, stim ys, and |. ite

ee tallation of ‘the s state’ of the! art surveillance and tracking equipment for
HEATBO. ds bd !

4 46. Oud jéations.’= Noone shall be, appointed as ‘a Security Officer unless he is a
duate, of a course related to security, and Ps

ee ‘Proper Maintenance. ~ There shall e crated a Maintenance Group headed by a
En r, in jl way ine with the following duties fed functions

a a falda SNS a YY .

Bont male 1H I

beta! Ens

Seabed

May fespan of the, system, "attained ‘rough rehabilitation,

and. overhauling

“Esure oun and effigient
i

ahaa the system; URAL eit ak:
in the inyentory;
1g stock, track OF structural facilities,

Beha ed id

i ARTICLE XII
OMPLIANCE, ACCIDENTS AND ADMINISTRATIVE PENALTIES

BS dth i deattchy Soi i raj Ale

Inspection of Rahway. ‘The 2 Authority shall ii hai
nfs aA OAR Qut aspects ofthe Zl
Ct ase

ae

itat a t

tie abject of an inspection! shall, when requested to do 80 bya
bays a ety | ra tion, ‘Within: reasonable period of time, any record,
it, Object oF Hm that relates ie ‘the imatter ‘under-inspection: A railway Safety Officer

may, mest ceppies or,take photographs of the record, socurnent, object or thing under inspection
ad ately Heater return the same.



‘thing under inspection for a longer period of time, he may do so but shal be
ree (3) days afte receipt thereof

Directions of Raa Safety Officer
’ { het may do one o more ofthe following

When a railway safety officer carries

mi not
age iRecommend th ellaion of ‘the operation of sy railway system oF any activity
“5. jy, Tslated thereto when. in his expert opinion, there are reasonable grounds to believe
‘31: that the jgontinuing; operation of the’ railway, system and any’ related activity, may
ser the -safetyi of ed fiding Public and ‘the pmployees of the allway or cause
damage to property YU") 1°;
iF .Ordersthe removal of a rolling stock oi ‘anyequipment or any person on board, when
way safety officer js of the opinion that the operation or presence of the same
aseg danger'to'the safety of the public: or persons employed by or acting on behalf of
the operator unless restrained by the National Railway Authority; and.)
cae to stop the over:speeding of,a train when Violations are being committed
! elated to|the speed ofthe rolling stock.

pts:

hall, hep record of every accident
h TepOrt to the Authority.

: ei fan Ree mnsideration. ip Any, \person affected by an onder or decision of
Ps.Antho ty. iy ‘file | motion for reconsideration ,within Fifteen (15) working days, from
ceiDt No second mation. for recgnsiderati oft shall, be entertained.

Sis a
nd annnerupied resin of



ARTICLE XVI
TRANSFER OF RAILWAY TECHNOLOGY

* SEC. 60.' Railway Engineering Course.'~-A: four (4)-year baccalaureate course in
«Railway (Engineering Management and other related courses. shall be established in the
‘University’ of the Philippines. and/or the Polytechnic University of the Philippines and. shall
“receive an annual budgetary support which shall be provided in the Annual General
Appropriations Act.

t

‘ae SEC. 61. Railway Training Center. ~ A Railway Training Center shall be established by
[> the Authority to equip the railway manpower resource with the necessary skills and expertise in
| the development and, implementation of railway projects and program, and in the operation of
{railway systems.

t ‘

» SEC. 62. Manufacturing of Railway Equipment. ~ The Authority may endeavor to
“establish the necessary mechanisms for the manufacturing of railway equipment to ensure the
expansion and sustainability of a National Railway System herein envisioned,

t :

on ARTICLE XVII
Hd ' TRAIN DRIVERS

' SEC. 63. Train Drivers. ~‘To promote proficiency and to ensure the safety of the general
railway riding public, all train drivers must, be physically and mentally fit and pass all the tests
ES; andi. qualifications. to. be prescribed by, the Authority. They shall also undergo constant and
+e sgontinuing taining 8 mppree their level of ils, with 3 ant certification examinations to test
“the same,

3 SEC. 64. "Prain' Driver's License. ~ The Railway ‘Training Center shall conduct the
training for train drivers for a duration that it may determine and thereafter issue the necessary
‘Train Driver's, License (TDI) for those who will. pass the ning, according to its standards,
‘es Ais neasueniens Letpecatsemn abc ail pajoce

4 oC ARTICLE XVIIL
INSURANCE. COVERAGE,

insurance ffom natural and man-made disaster by the Government Service Insurance System
{(GSIS). In the event the management and/or operation of the railway system or any part thereof
with a private entity, the insurance shall be covered, by,an insurance corporation which attained
the lowest, most responsive bid after a competitive bidding process, taking into consideration the
Provisions of this Article... lana

"SEC. 66, Paisenger’s Insurance Coverage. - Each and evety rail’ passenger shall be
eavered by accident insurance by the rail operators, government or private, in the amount of Two
Hundred ‘Thousand Pesos (Php 200,000.00) incase of death and not ‘more than One Hundred
‘Thousand’Pesos (Php 100,00.00) ‘in case of an injury exclusive of medical and hospitalization
expense, jand these amounts; shall be adjusted once. every. five (5) years based on inflation as
seeming by.the, National Economic, Development Authority (“NEDA”),

me °° “ARTICLE XIX
four ACOUNTARILITY

SEC. 67. Accountability. ~'To ensure public accountability, the Authority shall be subject
-to'the'audit ofthe Commission on! Audit (COA) and shall comply with all the generally accepted



accounting and auditing rules and regulations and those which the Commission may promulgate
{0 time’ pursuant to its constitutional mandate,

ARTICLE XX
LEGISLATIVE FRANCHISE

4 aS orn the Congress of the Phlipaies Entities alréady operating with an existing franchise shall
have: ong att 1), eet auping ahich it must renew the, same: P

a

Any. ‘nti om. the, private sector mai ‘Own, construct, maintain and operate a railviny

‘oyided that it,shall be a holder of the appropriate legislative franchise prior to the
‘S: Spnstruetion; maintenance and/or operation of a railway system, and Provided, further, that such
railwa system. ‘al ‘nat conflict with that at already. being’ operated, ‘managed and ‘maintained i

y, amend, nod revoke or,cancel its franchise, whichever is applicable,
the other, punishable act, and imposable penalties under this Article, if

a ' ARTICLE XXI
: (4.0141 RENALTIES,

SEC. 19, dnecysion. = The entry, intrusion, ‘occupation,, settlement,, possession and
™ gonstruction on, the properties described. in Section 43. Article’ XI hereof shall be considered a

grime against property and punishable by imprisonment ranging from six (6) months and one (1)
day'to two (2) "years. and or fined in an’ amount not’ lower than Ten Thousand Pesos Php
- 40,000. @ as may besdtemine by the,court.

ayn
ierSon Whois found to-have stoien any part

“a Exceeding the authorized. i speed limit of hi solling stock shall be punished with: (1) a
fine of Ope Hundred Thousand, Pesds (Phip 100,00.00) for the first offense; (2) a fine of
hhrce Hundred ‘Thousand Pesos (Php 300,000.00) for the second offense; and (3) a fine

: ed Thqusand Pesps (Php, 500,000.00) for.the th ; i
\ Failure to properly intain, the system resulting to service interruption ‘Shall be fin
‘One Hundred” "Thos ‘Pesos'(Php 100,000.00) to Two Hundred Thousand Pesos (Pip
eR 200, 00 00) for the first offense; (2)-Two Hundred Thousand Besos (Php 200,000.00) tp
abet the second offense; and (3) Thre¢
i Bande Thousand Pesos: (Ph



pos naa eae Hels

Fi dures io operate shall be fined withiOne Million Pesos (Php 1,000,000.00) for every day

of Hon-operatign, and ‘cancellation of its franchise or authority after thirty (30) days of

nop-operation, except when caused by force majewere or fortuitous event;

Failure. to comply with safety and security regulations resulting to injury or loss of life

anqiidamage ‘to property shall’ be ‘fined ‘with, One Hundred Thousand Pesos (Php
000,00) for injury and Five Hundred Thousand Pesos (Php 500,000.00) for every loss

aman lifes 3)

‘parts! lity shall’ bé “fined with ‘an“amount
‘equiyalent to the cost of the required spare parts;

“'Fallare to:maintain aimaintenance and accident:record. shall be fined with: a) One
Hi eYHundred ‘Thousand: Pesos (Php, 100,000.00),'for-the first’ offense; (2) Two Hundred
‘Thousand ‘Pesos \(Php 200,000.00) for the: second offense; and (3) Three Hundred
‘Thousand Pesos (Php 300,000.00); 3...

Failureito gomply with: regulations on cleanliness and sanitation shall be fined with: (1)
One, Hundred: Thousand Pesos (Php. 100,000,00) for the first offense; (2) Two Hundred
‘Thousand Pesos (Php, 200,000;00) ‘for, the, second -offense; and (3) Three: Hundred
Thousand Resos:(Php 300,000.00) for the third offense; and. . |

Failure. te eamply, with, orders,,decisions, and similar issuances, of they Authority shall be
fi Hundred Thousand ,Pesos, (Php 100,000.00) for every day of non-

2hilippine National
‘Authority (LRTA), the Panay Railways Incorporated,
Heats juzon, Railway; Corporation. GNORTHRAIL). and all. other‘rail offices and. agencies
hoe be. et so ang theig. functions, Projects, assets and liabilities shall be assumed,
zi toute -approprat ilway, sCorornion, fei the case may be. The

ante

oitionssi ka GIP. Bio

SAl Light R Rail. Transit of the Department, of
fer, Contract, with the Metro Rail Transit
9.nd assumed the Luzon Raibway,

aay et sc jot cas
ete sis of iene
all be valued by the

Wid
ied Oifieersapal Personnel who are qualified to receive
RA‘ 1616 and'RA 660 shall be entitled to an additional one (1) month

ibe: Any, Officers of Rersonnel may avail of the same benefits as
scien e paragraph provided that they yoluntarily separate‘or
es fyb ha se, aah fied fo receive, retirement beneis



SEC. 7 Oversight Co) mitize = A Congressional Oversight Committee
y created composed of the Chairpersons of the Committee on Public Services of the

rand the Committee on Transportation of the House of Representatives as Chairpersons
d four.(4) members, from each House as Member, to be designated by the Senate President and
= ‘Speaker, of: the House of Representatives, respectively, The Oversight Committee, shall
onitor and ensure. the effeative. implementation of this Act.

SEC, 79, ses tiuils Clause if any provisions of this Act is declared invalid, the
ioe thereof not affected by such declaration shall remain in force and effect

te SEC. 80, Repealing Clause: - The provisions af Republic Act No, 1156, as amended and
tiyg Order No. 603, asjamended, are hereby repealed,

ae brebtied  ¢

2 3 at ont fd iy %
co fe SEC. 81, his Aci eft fie 15) days following its publication
F Tal, circulation.

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