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THIRTEENTH CONGRESS d F  THE REPUBLI 
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OF THE PHILIPPINES 
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Firsf Regular Session 
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t
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Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Hindsight tells us the savings in terms of bodily injuries, lives, and property 
are worth every bit of prevention measure to ensure that accidents do not 
happen. 
It is government policy that every regulatory agency, say, in sea, air or 
land transport is charged with the enforcement of safety measures and 
precautions within its sphere of operations. Very few of these agencies are 
adequately equipped to handle accidents. Moreover, tasking these same 
agencies with the conduct of investigations if and when accidents do happen, 
involves a conflict of interest because in most of the cases a stricter enforcement 
of the safety regulations could have prevented the accidents. 
Rapid technological advances in transportation will in all likelihood 
increase the payload on roads, highways and bridges, sea-lanes and air-lanes 
and increase the risks attendant to transportation and travel. 
This bill proposes the creation of the National Transportation Safety Board 
which shall have the power to conduct investigations on transportation accidents, 
formulate and implement safety programs, and prosecute violators of safety rules 
and regulations. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERJGIO 
OSMENA 
Senator 
k 
Ill 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 
OF THE PHILIPPINE 
) 
S E N A T  
S. No. 
Introduced by Senator S. R. Osmefia 111 
AN ACT 
CREATING 
A 
NATIONAL 
TRANSPORTATION 
SAFETY 
BOARD, 
APPROPRIATING FUNDS THEREFORE, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines in Congress assembled: 
Section I. 
Title - This Act may be cited as the “Transportation Safety 
Act of 2004” 
Sec. 2. Declarafion o f  Policy - It is the policy of the State to promote 
safety in the transportation of keople and goods through cost-effective measures 
that either prevent, remedy or mitigate accidents involving any mode of transport, 
including pipelines and conveyors. In pursuit of this objective, the Government 
shall conduct independent accident investigations, support safety programs 
based on continual and objective review of causes or reasons for unsafely, 
appraise and assess operating practices and regulations or government 
agencies involved in transportation in so far as they affect safety, and, where 
appropriate, 
shall 
initiate, 
coordinate, formulate 
or 
promulgate 
safety 
improvement standards for observance and implementation by conqerned public 
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agencies and/or private entities. 
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See. 3. Creation of the National Transportation Safety Board and its 
relationship with other Government Agencies - An autonomous National 
Transportation Safety Board, is hereby created to implement the foregoing policy 
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if the State. For administrative purposes, the Board shall be attached to the 
Department of Justice. The Department of Justice is hereby empowered and 
expected to initiate prosecution or otherwise take affirmative action on the basis 
of the finding and recommendations of the Board, if the Department finds the 
same and the procedures followed acceptable. 
Sec. 4. Organizafion - (I) 
The Board shall consist of three (3) full-tim'e 
members, including a Chairman, who shall be appointed by the President of the 
Philippines, with the advice and consent of the Commission on appointments. A 
member must have at least ten ( I O )  years of practiced experience as an 
employee or officer of a transport utility firm or regulatory agency in either air, 
land, or mode of transportation and preferably, with knowledge of accident 
reconstruction, safety engineering, or transportation and traffic safety. At any 
given lime, one of the three (3) members shall be a lawyer. 
(2) The terms of office of the members of the Board shall be six (6) years, 
except that the first appointees shall have term of two, four, and six years, 
respectively. An individual may be re-appointed for another term, but in no case 
exceeding twelve (12) years of service with the Board. Upon the expiration of his 
term of office, a member shall continue to serve until his successor is appointed 
and shall have qualified. Any member of the Board may be removed by the 
President of the Philippines for cause including inefficiency, neglect of duty, or 
malfeasance in office. 
(3) The Chairman shall be the Chief Executive Officer of the Board and 
shall exercise the executive and administrative functions of the Board with 
respect to the appointment and supervision of personnel employed by the Board; 
the distribution of business among such personnel and among any administrative 
units of the Board; and the use and expenditure of funds. The Chairman shall be 
assisted by a Managing Director and both shall be governed by the general 
policies established by the Board en banc, including any decisions, finding, 
determinations, rules, regulations, and formal resolutions. 
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(4) t h e  Board shall establish and maintain distinct and appropriately 
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staffed budeaus, divisions, or offices to investigate and report on accidents 
involving e ch of the following modes of transportation. 
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(a) Aviation; 
(b) Highway and motor vehicle; 
(c) ipeline, railroad and tracked vehicle; and 
(d) r 
Marine transport carriers. 
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The Board shall, in addition, establish and maintain such capability as may 
be neede to investigate and report on the safe transportation of hazardous 
materials. 1 
(5)'The Board shall have a Managing Director who shall be appointed by 
the Presid nt of the Philippines upon the recommendation of the Board. He shall 
be respondible for the day to day administration of the Board. 
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Sed 5. Compensation - The Chairman of the Board shall receive an 
annual saary equivalent to an Undersecretary of a Department, while the 
members f the Board shall receive an annual salary equivalent to an Assistant 
Secretary. The compensation of the Managing Director shall be that applicable 
to a line b 1 
reau director. They shall be entitled to commutable representation 
and translortation allowances per month in the amount not exceeding the 
monthly s lary of the lowest-paid regular employee of the safety Board. 
Sec. 6. Dufies and Functions of fhe Board - The Board shall (1) 
Investigate or cause to be investigated (in such detail as it shall prescribe ), and 
determine the facts, conditions and circumstances and the cause or probable 
cause or causes of any: 
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(a) aircraft accident in accordance with regulations to be prescribed jointly 
by 
the 
Board 
and 
the 
Secretary 
of 
Transportation 
and 
Communications: 
Provided, that 
the facts, 
conditions, 
and 
circumstances, and the cause or probable cause determined 
therefrom shall be made available to the public by the Board; 
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(b) highway accident, including any railroad grade crossing accident, and 
it selects in cooperation with the agencies involved; 
(c) railroad accident in which there is a fatality, substantial property 
damage, or which involves a passenger train; 
(d) pipeline accident in which there is or substantial property damage; 
(e) major marine casualty, except one involving only military vessels, 
occurring on the navigable waters or territorial seas of the Philippines, 
in accordance with regulations to be prescribed jointly by the board 
and the Coast guard; Provided, That the facts, conditions, and 
circumstances, and the cause or probable cause determined 
therefrom shall be made available to the public by the Board; 
(f) other accident which occurs in connection with the transportation of 
people or property which, in the judgement of the Board, is 
catastrophic, involves problems of a recurring character, or would 
otherwise carry out the policy of this Act. 
(2) Report in writing on the facts, conditions, and circumstance of each 
accident investigated pursuant to paragraph (1) of this subsection and cause 
such reports to be made available to the public within the shortest possible time 
after the occurrence of the accident; 
(3) Issue periodic reports to the Congress, the President, and to 
governmental and non-governmental agencies concerned with transportation 
safety, including owners of public transportation carriers who may be concerned 
with the findings of the Board and to interested persons recommending and 
advocating meaningful responses to reduce the likelihood or reoccurrence of 
transportation accidents; 
(4) Initiate and conduct special studies and special investigations on 
matters pertaining to safety in transportation and human injury avoidance; 
(5) Assess and re-assess techniques and methods of 
accident 
investigation 
and 
promulgate 
recommended 
procedures 
for 
accident 
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investigations for the information and guidance of concerned government 
agencies; 
(6) Evaluate and assess the effectiveness of the concerned government 
agencies in promoting transportation safety consciousness and in preventing 
accidents ; 
(7) Evaluate the adequacy of safeguards and procedures concerning the 
transportation of hazardous materials and the performance of carriers and 
government agencies charges with assuring the safe transportation of such 
materials; 
(8) Gather, analyze, maintain and publish from time to time data and 
statistics on transportation accidents; 
(9) Prosecute in behalf of the people, or file charges or cause the filing 
thereof, or move for the suspension, modification, or revocation of license or 
operating certificate, before the appropriate court and/or administrative body, 
against person or persons who may be guilty or responsible for accident 
investigated by the Board; Provided, That such course of action shall require 
prior approval of the Secretary of Justice. 
( I O )  Perform such other functions as may be necessary to implement 
effectively the objectives and provisions of this Act. 
Sec. 7. Power of the Board- (a) The Board or any designated member 
thereof may conduct such hearings, administer oaths and require by subpoena 
duces tecum the production of such evidence as the Board or such officer may 
deem necessary. 
In case of refusal to obey a subpoena, an order, or an inspection notice of 
the Board or of any duly designated employee thereof by any person, such 
person may be required to comply forth with by a court of competent jurisdiction 
upon the request of the Board. Failure to obey such an order is punishable by 
such court as a contempt of court. 
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(2) Any employee duly authorized by the Board, upon presenting 
appropriate credentials, may enter any property wherein a transportation 
accident has occurred or wreckage from such accident is located in order to 
undertake investigation thereof, 
The employee may inspect, at reasonable 
times, records, files processes, controls and facilities relevant to the investigation 
of accidents. 
Each inspection shall be commenced and completed with 
reasonable promptness. 
(3).The board may require and shall be furnished a copy of the autopsy 
reports by the officials concerned on any person who dies as a result of having 
been involved in a transportation accident. The Board may order, if necessary 
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the autopsy or require other tests of such persons as may be needed for the 
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investigation of the accident. 
(4) The Board may enter into such contracts, leases, agreements and 
other transactions as may be necessary in the conduct of its functions and 
duties. 
(5) The Board may call upon the assistance of and use available services, 
equipment and facilities 
of the 
Department 
of 
Transportation and 
Communications, the Department of National Defense, the Department of Public 
Works and Highways and other agencies and instrumentalities of the 
government. 
(6) The Board may create advisory committees composed of qualified 
private citizens and government officials with which the Board may consult in the 
implementation of its functions and duties, and to pay honoraria to these persons 
for meetings actually intended. Whenever necessary, the Board may likewise 
appoint recognized experts as Consultants on the accidents under investigation 
who shall be paid the compensation fixed by the Board; Provided, That not more 
than two (2) consultants shall be appointed for each accident being investigated. 
Sec. 
8. 
Recall, Replacement and Notification of Defective 
Conveyances - The Board may recommend that the Department of 
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Transportation and Communications order the recall by the manufacturer or its 
Philippine agent or representatives, of all locally sold units of a particular model 
of a vehicle or transport vessel, if a defect attributable to the design or 
manufacture of any part or instrumentation of the model, had been reported 
within five (5) years of the date of introduction of the model into the local market 
and subsequently proven or substantiated to affect many units of that model. 
The purpose of such recall shall be for the correction of said defect in all affected 
units either by replacement or the redesign of the defective device in order to 
render the particular transport vessel model safe for public and commercial use. 
If this defect cannot be technically corrected, the Department of Transportation 
and Communications can instead order a full refund for all surrendered vehicles. 
In any case, the Department of Justice can initiate prosecutory proceedings. The 
Board shall notify not only the distributor or purchase but also the public of such 
defect. The cost for such remedial measures shall be for the account of the 
manufacturer or its agents, without prejudice to any claims for damages that the 
victims of accidents on their heirs may file at the proper courts. 
Sec. 9. Grounding Defective Conveyance - The Board shall, after 
consultations with the proper government regulatory or registering agency, order 
the grounding of any defective conveyance pending the investigation of the 
cause or nature of its defect. If the defect will not affect the safety of transport 
operations, the Board may authorize the continuous operation of the conveyance 
under certain limitations to be prescribed by it. 
Sec. 10, lrnmunized Testimony - No testimony or part thereof taken 
during any investigation conducted by the Board relating to the accident or the 
investigation thereof, shall be admitted as evidence or used in any suit or action 
for damages growing out of any matter mentioned in such testimony. 
The 
Board’s official report or part thereof, however, may be used as rebuttable 
evidence or basis for instituting a suit or court action. 
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Sec. 11. Penalfies - The unjustified failure to implement the necessary 
measure promulgated by the Board under Section six, paragraph (2) shall be 
punishable by one (I) 
to six (6) months of imprisonment to be imposed upon the 
head or his assigned subordinate of the government office or agency concerned, 
without prejudice to administrative disciplinary action to be taken against him or 
his responsible subordinate. 
When the order or recommendation of the Board is not complied with or 
implemented by any person, operator, or company, manufacturer or distributor, 
within the'time prescribed by the Board in such order or report, the Board shall 
recommend to the licensing authority the immediate cancellation of the permit, 
license, or authority to operate which may have been granted to said person or 
entity. 
In case the offender is a manufacturer or distributor, an administrative fine 
in such amount as my be deemed appropriate by the Board, which shall not be 
less than five thousand pesos (P5,OOO.OO) nor more than the estimated peso 
value of the actual or potential damages arising therefrom, to be determined 
actually or by some empiric,al means, shall be imposed in addition to the 
cancellation of his or its permit, license, or authority. 
Sec. 12. Relationship with other lnsfifufions - (1) Nothing herein shall 
deter existing government accident investigation bodies from performing their 
intrinsic functions, including investigation of accidents or making inquiries 
thereon, when those functions exist prior to this Act: Provided, however, That the 
Board, at its discretion, may direct the manner in which such investigation shall 
be conducted, require the submission of the records, reports, finding and 
recommendations or assume direct responsibility for accidents satisfying the 
conditions enumerated under Section six, paragraph (1) of this Act. 
(2) The police or law enforcement agency shall continue to investigate and 
record accidents on the roads involving motor vehicle andlor pedestrians. The 


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Board shall prescribed a uniform and standard reporting system for such 
accidents which shall be mandatory to the principal investigating body or person. 
(3) The Board’s power shall take precedence over those of other 
government agencies tasked with investigating air and marine accidents which, 
in the judgement of the Board, requires its inquiry and attention. For proper 
handling, conservation and protection, the Board may assume possession or 
control of the records, files, specimens, pieces of evidence, and the like for such 
accidents. 
(4) The Board may require the submission of the records, reports, finding 
and recommendations of past investigations from any government investigating 
body, and the latter shall comply forthwith. 
(5) The Secretary of Justice shall direct the appropriate body or 
prosecuting arm of the State to institute proceedings, suit or court action, against 
any person or entity who may be guilty of negligence or instrumental to the 
occurrence of the accidents, when in his judgement, the report or finding of the 
Board warrant such action. 
(6) In the exercise of its powers, the Board shall take into consideration 
the provisions of any treaty or agreement entered into by the Philippines with 
other countries relative to investigations of transportation accidents. 
Sec. 13. Appropriation - The sum of twenty-four million pesos 
(P24,000,000.00) is hereby authorized to be appropriated, out of any funds of the 
National Treasury not otherwise appropriated for the initial organization and 
operation of the Board. Thereafter, such amounts as may be necessary to 
finance its operations and maintenance shall be included in the annual General 
Appropriations Act. 
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Savings from its annual operating budgets shall be constituted into a 
TRANSPORTATION Safety Fund, to be administered by the National Treasurer, 
until the Fund shall have reached the level of Ten million pesos (P10,000,000.00) 
or twenty five percent (25%) of its previous year’s budget, whichever is higher. 
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The Fund can only be used for reimbursing the extraordinary expenses of 
government and private agencies and/or persons mobilized by the Board in 
investigating major accidents. Releases from the Fund shall be made promptly 
upon request by the Board. 
Sec. 14. Separability Clause - Any portion or provision of this Act which 
may be declared unconstitutional shall not have the effect of nullifying other 
portions of provisions hereof as long as such remaining portions or provisions 
can still subsist and be given entirely. 
Sec. 15. Repealing Clause - All laws, decrees, orders, proclamations, 
rules and regulations, or parts thereof, which are hereby repealed, appealed, 
amended or modified accordingly. 
Sec. 16. Effectivity - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved,