Republic of the Philippines
House of Representatives DATE ).1 JUL 25
Quezon City, Metro Manila TIME I) 20am

TWENTIETH CONGRESS
First Regular Session
House Bill No. 752

INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO

EXPLANATORY NOTE

This bill is a refiled measure originally filed by Representative Xavier Jesus D
Romualdo during the 17th and 18th Congresses and previously referred to the
Committee on Government Reorganization

The core rationale for this legislative proposal remains relevant today—arguably
even more urgent—given the increasing complexity and frequency of
transportation-related threats in the country. Transportation security continues
to be a critical national concern, and lapses in enforcement, fragmented
authority, and non-compliance with international standards remain persistent
issues that must be addressed through comprehensive institutional reform

Recent events further underscore this need. In 2024. Metro Manila alone
recorded over 86,000 road traffic incidents, a significant uptick from previous
years. A tragic crash in Cotabato in March 2024 claimed 17 lives, while just this
May 2025, an SUV plowed into NAIA Terminal 1, resulting in casualties and
raising alarm over terminal security protocols. Meanwhile, threats to aviation
security are also growing. In late 2024, a Manila-bound international flight had
to undergo full security procedures after a bomb threat was identified in
coordination with Australian authorities. At sea, the country witnessed a major
maritime incident in July 2024, when the MT Terranova sank off Bataan, spilling
over 1.5 million liters of industrial oil—highlighting lapses in enforcement of
maritime safety regulations.

Moreover, cyberattacks targeting transportation agencies are becoming more
frequent and sophisticated. In 2024, the Maritime Industry Authority (MARINA)
fell victim to a malware attack that compromised sensitive databases including
vessel and licensing records. On a broader scale, government institutions,
including transport-related ones, now face an average of over 4,000
cyberattacks weekly, with some breaches reaching up to 10 GB in stolen data
In the realm of public mass transit, while incidents may appear less severe, they
reveal deep systemic issues. Between January and July 2024, at least 67
pickpocketing incidents were reported across LRT-1 operations, prompting the
deployment of additional security forces, K9 units, and law enforcement—yet
the need for long-term structural solutions remains unaddressed


In view of these realities, this bill proposes the transformation of the Office for
Transportation Security (OTS) into the National Transportation Security
Regulatory Commission, a permanent, centralized regulatory body with
jurisdiction over the security of all modes of transportation—land, air, and sea—
including terminals, infrastructure, and systems. The Commission shall be
attached to the Office of the President for administrative and budgetary support
and shall be vested with quasi-legislative and quasi-judicial powers to enforce
national and international transport security protocols, conduct audits, and
impose sanctions when necessary

The creation of this Commission will not only demonstrate the Philippines’
commitment to ensuring transport safety but will also fulfill our obligations under
international conventions on transportation security. It will eliminate duplication
of functions among agencies, close gaps in the enforcement of security
standards, and institute a framework of public accountability, oversight, and
regulatory coherence. With growing threats—both physical and digital—
targeting our transport infrastructure, the establishment of a strong, singular
regulatory authority is no longer optional, but imperative.

The immediate passage of this bill is therefore eamestly sought

JURDI IS M. ROMUALDO.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session
HOUSE BILL NO. _752

INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO

AN ACT
TRANSFORMING THE OFFICE FOR TRANSPORTATION SECURITY INTO THE
NATIONAL TRANSPORTATION SECURITY REGULATORY COMMISSION AND
FOR OTHER PURPOSES

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

assembled:

CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. — This Act shall be known and cited as the “Aviation and

Transportation Sect Act.” It shal] hereinafter be referred to as the “Act.”

SEC. 2. Declaration of Policy. ~ It is hereby declared the policy of the State to:

(a) Recognize the vital role of public transportation in nation building, economic growth,
protecting and promoting the rights of its people to a secure transportation system
through the adoption and promulgation of Transportation Security Programs covering all
modes of transport: civil aviation; maritime; pipeline transport; and land and rail

transportation systems, following international standards and practices;

(b) Ensure compliance with the Convention on International Civil Aviation (Chicago
Convention) and the International Convention for the Safety of Life at Sea, 1974
(SOLAS Convention). As a member of the community of nations and signatory State to
international conventions, the Philippines shall faithfully comply with the provisions of:
Chapter XI-2 otherwise known as the International Ship and Port Facility Security Code
(ISPS CODE) of the International Maritime Organization (MO): Annex 17 of
International Civil Aviation Organization (ICAO) and its other security related annexes;
and such other wansport security related international conventions, agreements and

protocols;

(c) Ensure that responsibilities are properly delineated and allocated among and between
government agencies responsible in the security of transportation systems to avoid
conflict of interest and establish accountability;

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(d)

Ensure that prescribed transportation security standards, policies. and rules and
regulations are in accordance with international agrcements and conventions and the
practices are in accordance with international norms. The National Transportation
Security Regulatory Commission (NTSRC), hereinafter referred to as the “Commission”,

created under this Act, shall ensure that these policies and standards are enforced; and

Harmonize all regulatory policies that are being implemented by various government
regulatory agencies and ensure that they are consistent with the State’s commitment

under various international conventions.

SEC. 3. Coverage. — Any law to the contrary notwithstanding, the Commission shall

have jurisdiction, supervision, and control over all security arrangements and standards involving

airports; aircraft; ports; maritime transport, including their respective terminals; rail and land

transport, including their respective terminals and stations; and pipeline transport systems

throughout the Philippines: Provided, That pipeline transport systems considered as own use

shall not be covered by the provisions of this Act.

(a

(b)

(c)

SEC. 4. As used in this Act, the following terms are hereinbelow defined:

“Government airport” refers to an airport owned and operated by the Philippine

government and/or any of its instrumentalities, including those with special charters and

those located in free ports and special economic zones, including, but not limited to:

(1) Diosdado Macapagal International Airport/Clark International Airport
Corporation (Clark Development Corporation);

(2) Mactan-Cebu International Airport Authority;

(3) Manila International Airport Authority:

(4) San Fernando Airport (Poro Point Management Corporation); and

(5) Subic International Airport (Subic Bay Metropolitan Authority)

“Government port” refers to a port owned and operated

y the Philippine government
and/or any of its instrumentalities, including those with special charters and those located
in free ports and special economic zones, including, but not limited to:

(1) Aurora Pacific Economic Zone and Freeport Authority

(2) Authority of the Freeport Area of Bataan:

(3) Cagayan Economic Zone Authority:

(4) Cebu Ports Authority;

(5) Philippine Ports Authority;

(6) Poro Point Management Corporation;

(7) Subic Bay Metropolitan Authority; and

(8) Zamboanga City Special Economic Zone Authority and Freeport

“Pipeline” or “pipeline transport system” refers to all parts of a pipeline system connected

together to convey hazardous liquids between stations and/or plants that are not adjacent


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to each other, including pipe, risers, pig taps, components, appurtenances, isolating

valves, pipeline end manifolds, (PLEM) and sectionalising valves. For the avoidance of

doubt, the term “pipeline system” or “pipeline transport system” expressly excludes pipes
and appurtenances that form part of a piping system within the operation of a facility,
particularly for product transfers:

(d) “Private airports” refer to airports owned by any private person, natural or juridical;

(e) “Private ports” refer to ports owned by any private person, natural or juridical; and

(f) “Transport operator” refers to any person, natural or juridical, holding a government
concession, franchise, or permit to operate any public means of transport and/or public

transport facilities.

CHAPTER IL
TRANSPORTATION SECURITY STRUCTURE
SEC. 5. Organization. ~ The transportation security structure shall be divided into four

(4) sectors, namely: civil aviation; maritime; pipeline transport; and land and rail transport.

In line with the policy declaration of the State, the following agencies shall be subject to the
oversight power of the Commission: Civil Aviation Authority of the Philippines (CAAP); Land
‘Transportation Franchising Regulatory Board (LTFRB); Land Transportation Office (LTO);
Maritime Industry Authority (MARINA); Philippine Coast Guard (PCG); and Philippine Ports
Authority (PPA). Government and private airports & ports shall also be subject to the oversight

power of the Commission.

CHAPTER IIL
NATIONAL TRANSPORTATION SECURITY PROGRAM
SEC. 6. Adoption and Formulation of National Transportation Security Programs, —
The State shall adopt the National Civil Aviation Security Program (NCASP), in accordance
with the Convention on International Civil Aviation (Chicago Convention); a National Security
Program for Sea Transport and Maritime Infrastructure (NSPSTMI) in accordance with the
International Convention for the Safety of Life at Sea, 1974 (Solas Convention); and shall
develop and formulate National Security Programs for Pipeline Transport and Land & Rail

‘Transportation.

SEC. 7. Promulgation of Transportation Security Programs. ~ Within six (6) months
from the effectivity of this Act, the National Civil Aviation Security Program (NCASP), the
National Security Program for Sea Transport and Maritime Infrastructure (NSPSTMD), the
National Security Program for Pipeline Transport (NSPPT), and the National Security Program
for Land and Rail Transportation (NSPLRT) shall be promulgated by the Commission. The
Commission shall conduct sectoral consultations with various stakeholders. The various
transportation Security Programs shall undergo mandatory review every five (5) years.

Pursuant to the Transportation Security Programs, the Commission shall also establish

and implement, for the four (4) modes of transportation, a National Transportation Security

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Training Program (NTSTP), for the training of personnel involved in or responsible for the
implementation of transportation security measures; and a National Transportation Security
Quality Control Program (NTSQCP), for measuring compliance with and validating the

effectiveness of the Transportation Security Programs.

CHAPTER IV
THE COMMISSION
SEC. 8. Transformation of the Office for Transportation Security (OTS). - (a) The
OTS, created by virtue of Executive Order No. 277 (s. 2004), as amended by Executive Order
No. 311 (s. 2004), is hereby transformed into the Commission. an independent and single
regulatory oversight body for the security of transportation systems, with quasi-judicial and
quasi-legislative powers. The Commission shall be attached to the Office of the President

for administrative and budgetary purposes.

(b) The Commission shall be the authority with respect to the implementation of Annex 17 to
the International Convention on Civil Aviation (Chicago Convention) and other civil
aviation security related conventions; and shall be the Designated Authority and
Administration with respect to the implementation of the International Ship and Port
Facility Security (ISPS) Code of the 1974 Safety of Life as Sea (SOLAS) Convention.

(©) The Commission shall be composed of a Chairperson and six (6) members to be
appointed by the President of the Philippines. The Chairperson and the members of the
Commission shall be natural-born citizens and residents of the Philippines, persons of
good moral character, at least thirty-five (35) years of age, nd of recognized competence
in any of the following fields: transportation security, transportation engineering,
transportation security management, with at least three (3) years actual and distinguished
experience in their respective fields of expertise: Provided. That of the six (6) members
of the Commission, one (1) shall come from the civil aviation sector; one (1) from the
maritime sector; one (1) from the pipeline transportation sector; and another from the
land transport or rail sector. They shall possess at least five (5) years of experience in
active practice in their respective fields: Provided further, that one (1) member shall be a
member of the Philippine Bar with at least five (5) years of experience in the practice of

law, preferably in the field of transportation.

(d) | The Chairperson of the Commission shall act as the Chief Executive Officer of the

Commission.

(e) All members of the Commission shall have a term of seven (7) years: Provided, That for
the first set of appointees, the Chairperson shall hold office for seven (7) years, three (3)
members shall hold office for five (5) years, and the other three (3) members shall hold
office for three (3) years: Provided further, that there shall be no reappointment for
another term and in no case shall any member serve for more than seven (7) years in the

Commission. Members of the Commission shall not be suspended or removed from


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office except for just cause as provided by law. In case of vacancy in the position of the
Chairperson of the Commission, the President shall appoint a new Chairperson from
among the two most senior members of the Commission, who shall continue to serve as
Chairperson until the completion of seven (7) years of service in the Commission. The
Chairperson and Members of the Commission must not have been a candidate for any

elective position in the elections immediately preceding their appointment.

(f) ‘The Chairperson and members of the Commission shall assume office at the beginning of
their terms. The Commission shall meet at least once a month to tackle its order of
business. The majority of the members of the Commission may call for a special meeting
if the need arises. The President may. at any time, direct the Commission to convene to

discuss important transportation security issues.

(2) The presence of at least five (5) members of the Commission shall constitute a quorum
and the majority vote of members in a meeting where « quorum is present shall be
necessary for the adoption of any rule, ruling, order, resolution, decision, or other acts of

the Commission.

SEC. 9. Enhancement of Technical Competence. ~ (a) The Commission shall establish
rigorous training programs for its staff for the purpose of enhancing the technical competence of
the Commission in the following areas: impact assessment, evaluation and audit of technical
performance and monitoring of compliance with service and performance standards,
environmental standards, transportation security standards, transportation infrastructure
standards, transportation education and training, and such other areas as will enable the

Commission to adequately perform its functions or exercise its powers,

(b) The Commission shall establish its own educational and training institute for the
enhancement of knowledge and skills of personnel performing transportation security
related responsibilities within the transportation security industry: Provided, That the
Commission shall prioritize education and training programs not provided by private
entities: Provided, further, That education and training for the development of core
competencies necessary in the exercise of regulatory power of the Commission shall be

given priority in the education and training budget of the Commission

SEC. 10. Powers and Functions of the Commission. — The Commission shall serve as the
single regulatory oversight body for promoting security in the transportation industry in order to
ensure public welfare and penalize violations of transportation security regulations. Towards this
end, it shall be responsible for the following key functions in the security of the transportation

systems:

(a) Review, revise and approve National Transportation Security Programs, its training and

quality control program and other related programs;


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Ensure compliance with international minimum standards for transportation security,
especially for international conventions and multilateral/bilateral agreements where the
Philippines is a state party, through promulgation of protocols, standards, and rules and

regulations;

Provide technical inputs to agreements being negotiated between the Philippines and

other countries in relation to transportation security concerns;

Promote desirable and inhibit undesirable transportation policies of regulatory agencies

through the facilitation of evidence-based decision making:

Assist the DOTr and other regulatory agencies within the transportation industry in the

strategic planning and design of regulatory policies;

Issue guidelines on the quality of, or conduct security assessments and other evaluative

tools related to transportation security standards, rules and regulations;

Review existing rules and regulations related to transportation security undertaken by
transportation industry stakeholders, and to recommend or require impact assessment or

changes to improve quality;

Review proposed rules and regulations related to transportation security and recommend

or require security assessments and/or changes;

Review newly issued rules and regulations related to transportation security and

recommend or require impa

assessments and/or changes;

Formulate and issue, after due notice and hearing, transport security standards, rules and

regulations, including penalties and sanctions;

Issue specific security directives to transportation operators, law enforcement agencies

and other relevant entities charged with the security of the transportation system;

Promote capacity building on transportation security;

Adjudicate cases arising from non-compliance to transportation security standards, rules
and regulations: Provided, That the decisions of the Commission on such cases shall be
immediately executory: Provided, further, that decisions of the Commission may only be

restrained or enjoined by the Court of Appeals:
Issue subpoena duces tecum and/or ad testificandum in any investigation or hearing;

Cite persons for contempt;

Impose fines and penalties for non-compliance with or breach of this Act, or its


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Implementing Rules and Regulations (IRR), and the standards, rules & regulations issued
by the Commission, including but not limited to, recommending the suspension or
revocation of any license, permit or certificate which authorizes the operation of public

means of transport or public transport facilities;

Before the end of April of each year, submit to the Office of the President of the
Philippines and the Congress, copy furnished the DOTr, an annual report containing such
matters or cases which have been filed before or referred to it during the preceding year,
the actions and proceedings undertaken and its decision or resolution in each case. The
Commission shall make copies of such reports available through its official website and
to any interested party upon payment of a charge which reflects actual reproduction costs.
The Commission shall publish all its decisions in at least one (1) newspaper of general

circulation, and publish in its official website and circulate to all interested transportation

industry stakeholder’s copies of its resolutions to ensure fair and impartial treatme!

Monitor the activities in the transportation industry with the end view of promoting
security; and consequently, enjoin the transportation sector to cooperate and coordinate

with the Commission;

In coordination with law enforcement agencies, access the premises of any transport
operators in case of an act of unlawful interference and if the access is necessary to

prevent such act:

In the exercise of its oversight function, inspect, audit, survey and test motu proprio
through its duly authorized representative documents, records, facilities or systems, at any

time for purposes of determining compliance with transpor

ation security standards, rules

and regulations;

Protect passengers of air carriers; maritime vessels, including but not limited to, fast-

craft, bancas, and ferries; railways and light rails; and inter-provincial buses:

Oversee compliance to security screening standards for passengers and cargo of air
carriers: maritime vessels, including but not limited to, fast-craft, bancas, and ferries;

railways and light rails; inter-provincial buses; and transport pipeline systems;

Develop, formulate, and ensure compliance to uniform standards and procedures for
searching and detaining passengers and property to ensure the safety of passengers. cargo,

and transport facilities infrastructure:

During a state of calamity or national emergency, as declared by the President through a
proclamation, the Commission shall, the provisions of any law to the contrary

notwithstanding:

(1) Exercise jurisdiction and control over port security; domestic transportation,

including aviation; maritime; pipeline, rail, and other surface transportation:

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(2) Oversee the transportation-related responsibilities of the national government,
except for the Department of National Defense (DND), Armed Forces of the
Philippines (AFP), and the Philippine National Police (PNP); and

(3) Provide notice to other departments and agencies of the national government

relative to threats to transportation and transportation infrastructure:

Provided, That the foregoing authority of the Commission under subparagraphs (1),
(2), and (3) shall only be effective for the duration of the said national emergency

or state of calamity.

(y)  Accredit and authorize third-party providers, including. but not limited to. airport

operatoi

; transport operators, light rail transit _conces

jonaires, to provide security
screening of passengers and cargo: Provided, That said providers shall strictly comply
with any and all standards set therefor by the Commission: Provided, further, That the
standards promulgated by the Commission shall be at par with international standards and
best practices: Provided, finally, That third-party providers who do not conform to, or are
found to have violated such standards shall be prohibited from providing such service to
any agency or instrumentality of the national government. including government-owned
or ~controlled corporations, for a period of not less than one (1) year but not more than

five (5) years;
(2) Enforce the IRR of this Act; and

(aa) Perform such other functions as are appropriate and necessary in order to preserve and

promote transportation security.

SEC. 11. Additional Powers and Functions of the Commission. — In addition to the

powers and functions in the preceding Section, the Commission is hereby empowered to:

(a) Enter into agreements, as may be necessary, with other agencies of the national
government to share or otherwise cross-check, as necessary. data on individuals identified

by such agencies as posing a risk to transportation or national security;

(b) Establish procedures for notifying the Director-General of the CAAP and the concerned
agencies of the national government, and airport and/or airline & transport security
officers of the identity of individuals known to pose, or suspected of posing, a risk of air

piracy or terrorism or a threat to passenger, transportation, or national security;

(©) In consultation with other agencies of the national government, require the concerned

transport operators:

(1) To use information from government agencies to identify individuals on passenger

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(2) If such an individual is identified, to notify the appropriate law enforcement

agencies, prevent the individual from boarding an aireraft, maritime vessel, train,
bus, or other vehicle, or take other appropriate action with respect to that

individual; and

(3) Consider requiring transport operators to share passenger lists with the appropriate
national government agencies for the purpose of identifying individuals who may

pose a threat to transport safety or national security.

SEC. 12. Enhancement of Technical Competence. ~ (2) The Commission shall establish
rigorous training programs for its staff for the purpose of enhancing the technical competence of
the Commission in the following areas impact assessment, evaluation and audit of technical
performance and monitoring of compliance with service and performance standards,
environmental standards, transportation security standards, transportation infrastructure
standards, transportation education and training, and such other areas as will enable the

Commission to adequately perform its functions or exercise its powers.

(b) The Commission shall establish its own educational and training institute for the
enhancement of knowledge and skills of personnel performing transportation security
related responsibilities within the transportation security industry: Provided, That the
Commission shall prioritize education and training programs not provided by private
entities: Provided, further, That education and training for the development of core
competencies necessary in the exercise of regulatory power of the Commission shall be

given priority in the education and training budget of the Commission.

SEC. 13. Transportation Security Committees. — There is hereby created the National Civil
Aviation Security Committee (NCASC) to coordinate security activities between or among
departments, agencies and other instrumentalities of the government, airport and aircraft
operators, air traffic service providers and other entities concerned with or responsible for the
implementation of the various aspects of the National Civil Aviation Security Program
(NCASP).

‘The NCASC shall be composed of the following:

Chairman, NTSRC Ex-Officio Chairman
Secretary, Department of Transportation Vice Chairman
Secretary, Department of Interior and Local Government Vice Chairman
Secretary, Department of National Defense Member

Secretary, Department of Justice Member

General Manager, Manila International Airport Authority Member

General Manager, Mactan-Cebu International Airport Authority Member
President, Clark International Airport Corporation Member
Administrator, Subic Bay Metropolitan Authority Member

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Director General, CAAP Member

Director, PNP Aviation Security Group Member
Commissioner, Bureau of Customs Member
Commissioner, Bureau of Immigration Member
Undersecretary for Policy, Department of Foreign A fairs Member
Director General, National Intelligence Coordinating Agency Member

The members of the NCASC may designate a permanent alternate to represent his or her agency:
Provided, That the rank of any official serving as the permanent alternate should not be
lower than an Undersecretary or its equivalent.
The NCASC, through its chairperson, may invite resource persons from other agencies of the
government and from the private sector, as may be necessary.
The Commission may likewise create security committees for maritime, pipeline, and
land transportation systems to facilitate the allocation of tasks and coordination of

responsibilities and activities between or among various stakeholders.

SEC. 14. Transportation Security Regulation Fund (TSRF). _ — The Commission is
hereby authorized to set, adjust, collect, or levy fees and charges for licenses, permits, and
certificates issued and other services rendered to transportation security stakeholders, which shall
form part of the TSRF. Such fees shall and charges shall become effective after publication in a
newspaper of general circulation or the Official Gazette.

The Aviation Security Fund mandated by Letters of Instruction No. 414 (s. 1976), as
amended shall form part of the TSRF.

The port and airport authorities, including privately operated airports and ports, are
hereby authorized and directed to collect transportation security fees which shall also form part
of the TSRF. The TSRE shall accrue to the Commission to support its operations, subject to
existing accounting and auditing rules and regulations.

The TSRF shall be released annually to the Commission, subject to the schedule to be
determined by the Department of Budget and Management (DBM).

CHAPTER V
ADMINISTRATIVE OFFENSES AGAINST TRANSPORTATION SYSTEM

SEC. 15. Other Offenses. — Administrative liability shall attach to any person or entity

who:

(a) refuses or fails, without reasonable justification, to provide information or to give access
to transportation facilities, necessary in the performance of the regulatory or oversight

functions of the Commission;
(b) refuses or fails, without reasonable justification to comply with the standards, rules and

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regulations issued by the Commission; and/or

(c) refuses or fails, without reasonable justification to comply with security directives issued

by the Commission;

SEC. 16. Administrative Penalties. - The Commission shall have the power to impose fines

and penalties for violation of Section 15 of this Act, consisting of:

(a) a fine of not less than one hundred thousand pesos (P 100,000.00) but not exceeding one
million pesos (P 1,000,000.00); and/or

(b) recommending the suspension or revocation of any license, permit or certificate to
operate public transportation to, as the case may be, to the CAAP; CAB; LTO; LTFRB:
MARINA; or the PCG.

CHAPTER VI
TRANSITORY PROVISIONS
SEC. 17. Transfer of Powers and Functions, ~ The powers and functions of the OTS are
hereby transferred to the Commission.
The foregoing wansfer of powers and functions shall include all applicable funds and

appropriations, records, equipment, property, and personnel as may be necessary.

SEC. 18. Transfer of Rights, Assets, and Liabilities. — The Commission shall, by virtue
of this Act, be subrogated to all the rights and assume all the liabilities of the OTS and all the
funds. records, property, assets. equipment, and such personnel as necessary, including
unexpended appropriations and/or allocations. All contracts and liabilities of the OTS are hereby
transferred to and assumed by the Commission and shall be acted upon in accordance with the

Auditing Code and other pertinent laws, rules, and regulations: Provided, That the officers and

employees of the OTS shall continue in a holdover capacity until such time as the new officials
and employees of the Commission shall have been duly appointed pursuant to the provisions of

this Act.

SEC. 19. Structure and Staffing Pattern, — The organizational framework and staffing
pattern of the Commission shall be prescribed and approved by the Chairperson of the
Commission within sixty (60) days after the approval of this Act and the authorized positions
created therein shall be filled by regular appointments by the President or the Chairperson, as the
case may be: Provided, That, in the filling of positions created, preference shall be given to the
personnel of the OTS: Provided, however, That if such individuals poysess the same

qualifications, seniority shall be given priority.

SEC. 20. Compensation and Other Emoluments for Personnel of the Commission. —
The compensation and other emoluments for the Chairperson and members of the Commission

and its personnel shall be exempted from the coverage of Republic Act No, 6758, otherwise

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known as the “Salary Standardization Act”. For this purpose, the schedule of compensation of

the Commission personnel, except for the salaries and compensation of the Chairperson and
members of the Commission, shall be submitted for approval to the President of the Philippines.

The new schedule of compensation shall be implemented within six (6) months from the
effectivity of this Act and may be upgraded by the President of the Philippines as the need arises:
Provided, that in no case shall the rate be upgraded more than once a year.

The Chairperson and members of the Commission shall be entitled to the same salaries,
allowances and benefits as those of the Presiding Justice and the Associate Justices of the Court
of Appeals, respectively. The Chairperson and the members of the Commission shall, upon
completion of their term or upon becoming eligible for retirement under existing laws, be
entitled to the same retirement benefits and the privileges provided for the Presiding Justice and

Associate Justices of the Court of Appeals, respectively.

SEC. 21. Separation Benefits of Officials and Employees of the Office for
Transportation Security (OTS). — Officials and employees of the OTS who opt to be separated
from the service as a result of the transformation of the OTS into the Commission shall be
entitled to either separation pay and other benefits in accordance with existing laws, rules or
regulations or benefits and other privileges provided under a separation plan which shall be
proposed by the Commission subject to the approval of the President: Provided, That the
separation and other benefits should conform to the provisions of Republic Act No. 6656

Provided, however, that officials and employees of the OTS who avail of the said
separation plan may reapply to and be reappointed to the Commission shall start their
government service anew: Provided, further, that in no case shall there be any diminution of

benefits under the separation plan until the full implementation of the transformation of OTS

the Commission.

CHAPTER VIL
FINAL PROVISIONS.

SEC. 22. Appropriations. The amount of FIVE HUNDRED MILLION PESOS
(P500,000,000.00) is hereby allocated for the initial operation of the Commission. Any deficit
shall initially be sourced from the Office of the President of the Philippines. Thereatter, the
amount needed for the operation and maintenance of the Commission shall be included in the
annual General Appropriations Act: Provided, however, That not less than two percent (2%) of
the total allocation for the Maintenance and Other Operating Expenses (MOOE) budget shall be
used for relevant trainings of personnel of the Commission.

Subject to existing rules and regulations, the funds and monies collected or which
otherwise come into the possession of the Commission from fees, surcharges, fines, and penalties

which the Commission may impose and collect under this Act.

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SEC. 23. Conflict of Interest, ~ The Chairperson and members of the Commission shall
ensure transparency in governance and shall submit to the President, the congressional
committees with jurisdiction over the Commission, and the Civil Service Commission (CSC), the
list of their relatives, within the fourth civil degree of consanguinity or affinity, legitimate or
illegitimate, holding any and all interest whatsoever, either as investor, stockholder, officer or

director, in any company or entity engaged in: private security: the transportation sector; and/or

in any entity that manufactures, imports, and/or distributes equipment that could be used for
security purposes,

Immediately prior to assuming office, the Chairperson, members, and employees of the
Commission, whether permanent, co-terminus, contractual, or casual, shall divest, through sale
or other legal disposition, any and all such interest: Provided, that such sale or disposition to any
person within the fourth degree of consanguinity or affinity is hereby prohibited

The divestment prescribed in the preceding paragraph shall likewise apply to the

members of the immediate family within the second degree of consanguinity having interest in

any institution or activity which falls under the regulatory jurisdiction or supervision of the
Commission

‘The Chairperson, members, officials, and employees of the Commission shall not
practice their profession during their tenure. They shall accept no other form of employment
during their tenure,

No spouse or relative by consanguinity or affinity within the fourth civil degree and no
law. business or professional partner or associate of the Chairperson or members may appear as
counsel or agent, appearing for or on behalf of the Chairperson or members for pecuniary
interest, on any matter pending before the Commission or transact business directly or indirectly
therewith.

The disqualification shall apply during the tenure of the Chairperson, member, official, o

employee concerned one (1) year from separation from the Commission.

SEC. 24. Statutory construction. — The provisions of this Act shall be liberally construed

to achieve the preservation and promotion of transportation security.

SEC. 25. Privacy protection. — Nothing in this Act shall be construed as weakening the

ions mandated by Republic Act No. 10173, otherwise known as the “Data Privacy Act of

SEC. 26. Implementing Rules and Regulations (IRR). — Within one hundred and twenty
(120) days from the effectivity of this Act and after consultations with the concerned
stakeholders in hearings conducted nationwide, the Commission shall formulate and issue the
necessary implementing rules and regulations for the effective implementation of this Act:
Provided: That the rank of any official representing a government agency in the crafting

of the IRR should not be lower than an Undersecretary or its equivalent.

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SEC. 27. Separability Clause. ~ If for any reason, any provision of this Act is declared
unconstitutional or invalid, the other parts or provisions hereof which are not affected thereby

shall continue to be in full force and effect.

SEC. 28. Visitorial Powers. — The Chairperson’s or Commission’s representative shall
have visitorial and examining authority over nongovernment entities with contracts for security
and other services made under the provisions of this Act.

During such examination, the non-government entity concerned shall produce all the
reports, records, books of accounts, and other papers that may be required.

‘The refusal by any such nongovernment entity to allow an examination of its books of accounts
and pertinent records or its concealment of any material information concerning its services shall

constitute a legal ground for the cancellation thereof.

SEC. 29. Repealing Clause. ~ The following laws and executive orders, and all other
laws. decrees, letters of instructions, executive orders and rules and regulations, or part or parts
thereof inconsistent with any provision of this Act, are hereby repealed, amended or otherwise

modified accordingly:

(a) Presidential Decree No. 505,

amended by Presidential Decree No. 857;

(b) Letter of Instructions No. 414 (1976), as amended by Letter of Instructions No. 414-A (s.
1976);

(c) Executive Order No. 778 (s. 1982), as amended by Executive Order No. 903 (s. 1983);

(d) Executive Order No. 69 (s. 1986);

(e) Republic Act No. 6958, otherwise known as the “Charter of the Mactan-Cebu

International Airport Authority”;

wo Republic Act No. 7227, otherwise known as the “Bases Conversion and Development

Act”:
(g) Republic Act No. 7621, otherwise known as the “Charter of the Cebu Port Authority”;

(h) — Republic Act No. 7903, otherwise known as the “Zamboanga City Special Economic
Zone Act of 1995";

(i) Executive Order No. 246 (s. 1995);

@ Republic Act No, 7922, otherwise known as the “Cagayan Special Economic Zone Act of
1995”;

(k) Executive Order No. 30 (s. 1998);

a Executive Order No. 277 (s. 2004), as amended by Executive Order No. 311 (s. 2004);

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(m) — Republic Act No. 9490, otherwise known as the “Aurora Special Economic Zone Act of
2007”; and

(n) Republic Act No. 9728. otherwise known as the “Freeport Area of Bataan (FAB) Act of
2009”

SEC. 30. Effectivity Clause. ~ This Act shall take effect after fifteen (15) days following
its complete publication in at least two (2) newspapers of general circulation or in the Official

Gazeute.

Approved,

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