", 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
g 
JJj -8 No 21 
First Regular Session 
1 
S E N A T E  
S.B. No. 
2013 
EXPLANATORY NOTE 
I 
This bill seeks to attach the Philippine Coast Guard to the Department of 
Transportation and Communications in order to achieve the following purposes: 
(I) 
to formalize its separation from the defense establishment while maintaining 
its status as a uniformed sea-going armed service; (2) to rationalize its maritime 
safety, maritime security and marine environmental protection functions by 
conferring it with the mandates of maritime safety, maritime security and marine 
environmental protection; and (3) to unleash the potential and capability of the 
PCG as a major partner in the maintenance of national security and economic 
development of the country as guardian of its marine wealth. 
The Philippine Coast Guard was originally created as the Bureau of Coast 
Guard under the Department of Commerce by the Philippine Commission in 
1902. Its primary task was to administer shipping and promote safety in the 
maritime industry. Congress intended the PCG as a civilian agency. 
However, due to policy considerations, the PCG was dade into a unit of 
the Philippine Navy to enable it to utilize the PN's personhel, facilities and 
installations for maximum utilization of scarce resources. 
While the PCG 
acquired a degree of development under the Philippine Navy, its direction was 
focused more on defense related matters owing to the raging insurgency 
problem. Consequently, the development of the capability of the PCG to its full 
potential was shunted or even totally neglected. Hence, its maritime safety 
functions was transferred to another agency tasked with the maritime industry 
development resulting to a delegation of the same functions to the PCG. 
This bill, is a consolidated version of the PCG Transfer Bill and the Magna 
Carta Bill. The PCG Transfer Bill has passed 2"d reading of the 11'' and 12'h 
Congreb but was overtaken by events que to lack of material time as a 
consequence of the happening of unavoidable historical circumstances. 
The enactment of this bill into law will finally solve the lingering problem of 
fragmented maritime administration in the country and vest to a sole government 
agency, the Philippine Coast Guard, the responsibility of promoting safety of life 
and property at sea, ensuring safe and comfortable sea transport, protecting the 
marine wealth, safeguardlng the marine environment and promoting and 
developing the ecotourism in the country. 
Lastly, the passage of this bill, which will not entail additional budget on 
the pert of the government, will formaiize the recognition of the Philippine Coast 


Guard as an important component in the maintenance of national security and 
economic development. 
It is upon these premises that thislbill's passage is mast earnestly sought. 


* ,  
THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
5 
JUN -8 AI0 121 
First Regular Session 
1 
/ 
RECEIVED 
S E N A T E  
introduced by Sen. Magsaysay, Jr. 
S. B. N o . 2 0 3  
AN ACT 
ESTABLJSHING THE PHlLlPPINE COASX GUARD AS AN ATTACHED AGENCY TO 
THE DEPARTMENT OF TRANSPORTATIOY AND COMMUNICATIQNS, FURTHER 
AMENDING REPUBLIC ACT 5173 AND PD 601, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and Houseiof Repmsentatives of the Philippines ip 
Congress assbmbled: 
CHAPTER 1 
I 
GENER~L 
PROVISIONS 
SI!CTION 1, Title. - This Act shall be known and cited as the "Philippine Coast 
Guard Law of 2005." 
SECTION 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 enjoyment 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 theipristine 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) enhancing maritime security; (c) 
safeguarding the marine environment; and (d) maintaining and ensuring peace and 
order in the archipelagic waters, territorial seas and exclusive economic zone. 
CHAPTER II 
PHILIPPINE COAST GUARD AS ATTACHED AGENCY 
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SECTION 3. Establishment. - The Philippine Coast Guard is hereby 
established as a distinct, armed, uniformed, and seagoing service attached to the 
Department of Transportation and Communications. 
SECTION 4. Powers and Functions. - The PCG shall have the following 
functions: 
a) To enforce and assist laws, promulgate aqd 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 
protection and preservation of our, 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 casually within the maritime jurisdiction of the 
Philipptnes including the high seas; in compliance with international maritime 
conventions: 
d) To enforce and assist in enforcemeqt of fisheries law, immigration law, tariff 
and customs law, forestry law, firearms and explosives law, 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: 
Section 5. Organization. The PCG shall remain a sea-going, distinct, armed, 
and uniformed commissioned service primarily responsible in enforcing this Act. 
Provided: That the PCG shall have the authority, whenever appropriate, to utilize by 
agreeme t the personnel, services and facilities of other departments, agencies and 
instr umekiities. 
Section 8. Composition. (a) The RCG shall consist of the following categories 
of officers and employees: 
l 
(I) 
PCG officers 
(2) PCG enlisted personnel 
(3) PCG non- uniformed personnel 
(4) Probationary Ensign ;and 
(5) Midshipmenlwomen I 
(6) Drafteesltrainees 
(b) There shall be a PCG Technical Service to be composed of medical doctors, 
dentist, nurses, lawyers, chaplains, including personnel whose pre-entry required 
course are closely related/allied to the aforementioned professionql group. Appointment 
of all PCG Officers shall be in the initial rank of COAST GUARD ENSIGN except for the 
following Field of Occupational Specialties (FOS): Dentists and Veterinarians whose 
initial appointment rank shall be COAST, GUARD LIEUTENANT JUNIOR GRADE: 
Lawyers, Medical Doctors and Chaplains whose initial appointment rank shall be 
COAST GUARD LIEUTENANT SENIOR GRADE. 
Section 7. 
Source of Uniformed Personnel. The PCG shall procure its 
uniformed personnel from the maritime schools, other colleges and universities to 
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i 
answer th B peculiar needs of the organization until such time that the PCG Academy is 
established. 
Section 8. PCG Trust Receipt The PCG shall continue to collect fees, charges 
and fines relevant to the exercise of its various regulatory functions to include lighthouse 
dues. 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, forithe 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 equipments, armaments, ammunitions, and as 
contingency fund for 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 aqd auditing rules and 
regulations. 
CHAPTER 111 
A .  ORGANIZATIONAL, OPERATIONAL and COMMAND STRUCTURE 
SECTION 9. 
Organlzational, Operational and Command Strueturn. - 
a) 
The PCG shall consist of uniformed1 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 or 
parts thereof 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 
Rag Officers in the Coast Guard active service. The Commandant shall have a 
maximum term of three (3) years. A Commandant who has sewed 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: 
I) 
Advise the President or the Secretary of the DOTC on the promulgations of 
executive omlers, mtes and regulations, proclamations and other issuances 
relative to matters under the jurisdiction of the PCG. 
2) Establish policies and standards forlthe 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; and 
4) Enter into contracts for the acquisition of floating air and sup-surface assets, real 
estate, communications equipment and other necessities relative to the 
performance of its powers and functions subject to the limitations of existing 
laws, rules and regulations. 
Q 
3 


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 
asqigned by the President or the Secretary of the DOTC. 
Section IO. 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 deems1 necessary to be responsive to the needs of 
the country and be able to carry out its mandate effectively and efficiently. 
8. PERSONNEL ADMlNlSTRATlON 
PROFESSIONALISM, WELFARE AND BENEFITS 
SECTION 11. Appointment - a) Appointment of all PCG officers shall be 
approved by the President of the Republic of the Philippines through the Secretary, 
DOTC. No person shall be appointed as a PCG officer unless he/she is a holder of a 
baccalaureate degree, preferably a licensed professional, andlor a graduate of Service 
Academies. 
b) Appointments and promotions of all PCG enlisted personpel shall be made by 
the Commandant, PCG. 
c) Appointments and promotions of all non-uniformed personnel shall be in 
accordance with the Civil Service Law, rules and regulations. 
Section 12. Promotion of PCG Officers. - (a) The Commandant, PCG shall 
recommend to the President, through the DOTC Sectetary the promotion of PCG 
Officers who are best qualified for appointment to be submitted by the PCG Officers 
Selection and Promotion Board. Provided: That helshe must have completed the 
required schooling and training relevant to said grades/ rank " ih position", and must 
have complied with the prescribed minimum time in grade based on approved PCG 
rules and regulation 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. Provided, fina//y: That special or meritorious promotion shall be extended to 
any PCG Officer for acts of inconspicuous courage and gallantry involvjng risk of his life 
above and beyond the call of duty. 
(b) Prodotion 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 Setvice 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. I He must have completed the required 
schooling and training retevant to said position, and must have complied with the 
required minimum time in grade based on approved PCG rules and regulations and 
other relevant law. Provided, that the pendency of any administrative or criminal or civil 
case before any court, body or trlbunal shall be a bar for promotion or assignment. 
Provided, finally, that special or meritorious promotion shall be extended only to any 
PCG Enlisted Personnel for acts of inconspicuous courage and gallantry involving the 
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4 


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. 
SECTION 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. Provided: That 
office~s 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 \s able to establish its own retirement system and develop health and welfare 
programs for its personnel. 
SECTION 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. 
SECTION 15. Retirement Benefitw- 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 1/2) for every year of actual Coast Guard service pay rendered beyond 
the initial twenty (20) of ninety percent (90%) for thirty six (36) years of active Coast 
Guard service and over. Provided, that the retiree shall have thd option to receive in 
advahce 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 his retiremqnt. 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. 
SECTION 10. 
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. 
SECTION 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 
\ 
SECTION 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 CA. 408, as amended, with 
Commandant, PCG as the convening authority, until such time that the PCG has 
adopted an appropriate justice system that shall govern the organization. 
5 


CHAPTER Vlli 
PAY AND ALLOWANCES FOR UNIFORMED PERSONNEL 
Section 19. Duty Hours. PCG personnel shall be on call 24 hours 2 day bqt 
are required to render minimum service of 8 hours a day except on scheduled duty or 
during red alert or national emergencies. 
Section 20. Salary Scale. The PCG shall have a salary scale separate 2nd 
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 be fits as are now, or hereafter may be authorized corresponding to the Salary 
scales of T 
he personnel of the Department of Education or at par with other government 
agencies performing law enforcement functions, whichever is higher. 
Section 21. Criteria for Saiaries. PCG personnel’s salaries shall correspond to 
the following criteria: 
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 
Basic monthly salary shall ,exclude the subsistence allowance, cost of 
living allowance, quarters allowance, clothing allowance, hazard pay, amelioration pay, 
Section 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 competent government agencies. 
Section 23. Peculiar Allowances. 
In areas wherein PCG personnel are 
exposed to hardship or other hazards usual to the performance of its mandated 
functions 2nd established to be peculiar to any given area or place of assignment, as 
determined by the PCG, he shall be compensated with sea duty, flying pay, instructor’s 
duty pay, hazardous pay andlor special hardship allowance. 
Section 24. Other a!lo*vances. In addition io the basic mofithly salary, PCG 
uniformed personnel shall be entitled to subsistence allowance, quarters allowance, 
clothing allowance, additional conpensatisn ‘allawance, persoiinel emergency reiief 
allowance, health care allowance, hazard pay, laundry allowance and other allowances 
as may be provided for by law. 
a. 
b. 
health care pay and all other allowances as may be provided by existing laws. 
b 
a. Longevity Pay. PCG personnel shall be entitled to a longevity pay of :en 
percent (10%) of their basic month pay lfor every five (5) years of service in the 
government, which shall be comjmputecl ficiiii 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. 
b. SeaDuQPPay. PCG persannel performing actual duties on board PCG 
vessels shall be entitled to a sea duty pay of fifty percent (50%) of their basic month 
Pay. 
I 
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i 
c. 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 month 
Pay. 
d. 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 
(25%) of their basic month pay. 
e. Aviation Duty Pay. PCG personnel performing actual duties with the Coast 
Guard Aviation Group shall be entitled to an Aviation Duty Pay of fifty (50%) of their 
basic month pay. 
f. 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 (50%) of their basic month pay. 
g. 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 (50%) of their basic month pay. 
Section 25. Medical and Dental Health Care Program. There shall be a 
medical and dental health care program for PCG personnel, non-uniformed personnel 
and theirldirect dependents, including parents and parents-in-law. The medical and 
dental health care program may be government-operated or a combination of 
government and private health management organization. 
Pending establishment 
thereof all expenses incurred shall be reimbursed by the PCG subject to the conditions 
established by law. PROVIDED, That, the PCG shall regularly program a budget on 
hospitalization of its personnel. 
Section 26. Educational Benefits., The PCG shatl formulate plans to improve 
the educational qualifications of PCG personnel and their dependents in accordance 
with existing laws, rules and regulations andlor in the absence of said laws, rules and 
regulations shall recommend to legislative bodies the enactment thereof. 
Section 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 persbnnel has a dwelling 
that is structurally sound, environmentally safe, affordable and located in a wholesome 
community. The PCG shall likewise be part of arid be covered by any housing program 
of the National Housing Authority. 
i 
Section 28. Compensation far Physical and Mental Disabiiity Sustained In 
the Course of Duty. PCG personnel shall be protected against the consequences or 
employment injuries. Physical and psychological stresses on the member's health are 
recognized as compensable occupational diseases, in accordance with existing laws. 
Section 29. Permanent Physical Disability. A uniformed member who incurs 
a total permanent disability in 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 29 of this Act. 
Section 30. Disabifity 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 Acf or existing laws. 
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I 


Section 31. Leaves. In addition to leave prjvileges 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. 
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 be cumulative and any p a l  thereof which may not be taken within 
the calendar year earned may be carried over the succeeding years. Whenever a 
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. 
Section 32. Exemption from Attachment and Taxes. All benefits granted by 
this 
act, 
including 
benefits 
received from 
any 
government 
insurance 
agencies/corporations, shall not be subject to attachment, levy, execution or any tax of 
whatever riature. 
CHAPTER IX 
TRANSITORY PROVISIONS 
I 
SECTION 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 President of the Philippines. 
SECTION 34. Organization of PCG Auxiliary - The PCG may organize and 
train a uivilian volunteer organization known as the PCG Auxiliary, under the direct 
control and supervision of the Commandant or any 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 of aids o navigation and such other activities that enhance maritime 
community relations which include civic action, youth development and related 
activities. 
CHAPTER X 
FINAL PROVISIONS 
Section 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 
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Key Budgetary Unit (KBU) being an attached agency of the Department of 
Transportation and Communications. 
SECTION 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. 
SECTION 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. 
SECTION 38. Repealing Clause. -8 
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. 
SECTION 39. Effectivity. - This Act shall take effect fifteen (1 5) days following 
its publication in two (2) national newspapers of general circulation. 
Approved. 
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