Republic of the Philippines

3 House of Representatives

4 Quezon City

5

6 SIXTEENTH CONGRESS LOX
7 First Regular Session

8

9 House BiILLNO, 2797

11 Introduced by Honorable Anthony M. Bravo and Honorable
12 Cresente C. Paez

EXPLANATORY NOTE

“Disaster” may be defined as a sudden calamitous event producing great material
damage, loss and distress. It is a disturbing fact that disasters have remained a constant problem
in the transportation industry, be it air, land or sea. These tragedies cause much damage to lives
and properties, with losses amounting to at least 2 to 3% of the country’s gross domestic product
(GDP) each year. Further, the economic losses are reflected mainly in the victim's productive
years that are taken away by their untimely deaths. The death and injuries due to various
accidents result in considerable waste of a country's resources— from the grief caused to family
and friends to the cost of enforcement of rights through the courts.

Recent events have shown that the transportation industry has experienced several major
catastrophes, The government has responded to every transportation disaster by forming fact-
finding bodies to investigate the cause or causes of the accident. These bodies were tasked to
pinpoint responsibility for such tragedies and review such regulations and policies to prevent
similar incidents from happening in the future. However, the recent disasters are testaments to
the inadequate response of government towards the prevention of similar catastrophes. These
tragedies could have been avoided had government initiated proactive measures designed to
ensure "safety consciousness" among the owners of public utilities as well as the regulatory
agencies mandated to monitor their operations,

To advance transportation safety consciousness, there is an urgent need to create the
National Transportation and Safety Board (NTSB) which shall be independent, non-regulatory
agency shall undertake to ensure thorough and impartial investigations of transportation
accidents. It shall be primarily responsible for the analysis, evaluation and prevention of air,
highway and marine transportation accidents, to include railway and pipeline systems, for the
effective promotion of safety and prevent loss of life and property. Briefly, the mission of this
Board is to engage in the investigation and determine probable cause(s) of transportation
accidents, the issuance of safety recommendations and special studies directed at preventing
recurrence of such accidents and evaluating the effectiveness of concerned government agencies
in preventing transportation accidents.

‘The creation of an independent government agency to promote transportation safety by
conducting independent accident investigations and by formulating safety improvement
recommendations has come of age in the Philippine transport system. As envisioned, the proper
conduct of responsibilities assigned to this independent Board requires vigorous investigation of
major accidents involving all types of public utility vehicles or vessels regulated by other
agencies of government. It demands continual review, appraisal, and assessment of the operating
practices and regulations of all such agencies. It also envisions calling for the making of
conclusions and recommendations that may be critical of or adverse to any such agency and its
officials
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7 Spee,



No government agency can properly perform such function unless it is totally separate
and independent from any other department, bureau, commission, or agency. The current
regulatory agencies involved in the transport industry cannot be expected to conduct a thorough
and impartial investigation on any major accident for the simple reason that such agencies may
be themselves liable due to the improper or lack of implementation of pertinent laws, rules and
regulations regarding safety.

The importance and necessity of safe transportation system in our country cannot be over
emphasized. The enactment of this measure is expected to ensure that all modes of transportation
in the Philippines are conducted safely. We believe that the NTSB will be an effective vehicle
for the realization of such a need

HON. CREBENSE C. PAEZ


Republic of the Philippines

House of Representatives
Quezon City

First Regular Session

HOUSE BILLNO._ 2797

1
2
3
4
5
6 SIXTEENTH CONGRESS
i
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9
0)
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Introduced by Honorable Anthony M. Bravo and Honorable
2 Cresente C. Paez

AN ACT
CREATING A NATIONAL TRANSPORTATION SAFETY BOARD
AND APPROPRIATING FUNDS THEREFOR

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

1, Short Title. - This act shall be known and cited as the “National
‘Transportation Safety Act of 2013”

SI

“TION 2, Declaration of Policy. - It is the policy of the State to prevent accidents and
save lives and property in transportation; promote safety in the transportation of people, property
and goods by conducting independent accident investigations; by continual and objective review,
appraisal and assessment of operating practices and regulations of government agencies
implementing transportation laws; and, by formulating and promulgating safety improvement
standards for observance and implementation, by said agencies and concerned private sectors.

SECTION 3. Creation. - There is hereby created a National Transportation Safety Board,
non-regulatory and independent agency herein after referred to as the Board, to implement the
foregoing policy

SECTION 4. Objectives. ~The Board shall have the following objectives:

(a) To prevent future accidents, save lives and reduce injuries and property damages,

(b) To ensure the survivors and families of the victims of transportation accidents receive
timely, compassionate assistance from the operators, other government agencies, and

community service organizations;


(c) To ensure implementation of safety improvements that have been identified by the
‘government agencies responsible for transportation safety;

(d) To conduct thorough accident and incident investigations, determining the probable
causes, and publishing accident reports and safety studies that will convince other to act;
and

(e) To provide safety information to the public, safety managers, and Board employees to

help them make more timely and informed decisions,

SECTION 5. Structure and Organization. - The Board shall be composed of five (5)
falltime members, including a Chairman and a Vice-chairman. All the members of the Board
shall have extensive training and experience in the respective field of our marine, highway and
rail transportation systems, and each must have adequate knowledge in investigation, analysis,
and evaluation of transportation accidents, particularly in the field of accident reconstruction,
safety engineering, or transportation safety,

Members of the Board shall be appointed by the President of the Philippines, with the
consent of the Commission on Appointments, for a term of six (6) years. The member designated
by the President as Chairman shall be with the consent of the Commission on Appointments. Of
those first appointed, two members shall hold office for six years, two members for four years,
and the last member for two years. Appointment to any vacancy shall be only for the unexpired
term of the predecessor. Upon the expiration of his term of office, a member shall continue to
serve until his successor is appointed and shall have qualified. In no case shall any Member be
appointed or designated in a temporal)’ or acting capacity. Any member of the Board may be
removed by the President for inefficiency, neglect of duty, malfeasance in office or any other
legal cause.

No member of the Board shall hold concurrently any other government office or position,
or be employed in any government-owned or controlled corporation or entity or any private,
business enterprise whose interest may be conflict with the Board’s function and duties. The
Chairman and Vice-chairman of the Board each shall serve for a term of two (2) years. The
Chairman shall be the chief executive officer of the Board and shall exercise the executive and
administrative functions thereof with respect to the appointment and supervision of personnel

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employed by the Board; the distribution of business among any administrative units of
the Board: and the use and expenditures of funds. The vice-Chairmen shall act as Chairman in
the event of the absence or incapacity of the Chairmen or in case of a vacancy in any office of
the Chairman, The Chairman of Acting Chairman shall be governed by the policies established
by the Board including any decisions, findings, determination, rules, regulations and formal
resolutions

Three (3) members of the Board shall constitute a quorum for the transaction of any
function of the Board

‘The Board shall establish and maintain distinet and appropriate staffed bureaus, divisions,
or offices to investigate and report on accidents involving each of the following modes of
transportation: (a) aviation; (b) highway and motor vehicle; and (c) railroad and tracked vehicles
The Board shall in addition establish and maintain any other such office as is needed, including
an office as is needed, including an office to investigate and report on the safe transportation of
hazardous materials.

SECTION 6. Functions of the Executive Offices. - For the proper management and
effective implementation of the objectives of the Board, each executive office shall perform the
following functions:

(a) Office of the Managing Director. - The Board shall have a Managing Director who

shall be appointed by the President of the Philippines upon recommendation of the Board,

The Managing Director shall have the following functions:

(1) Assist the Chairman in the discharge of his functions as executive and
administrative head of the Board,

(2) Coordinate and direct the activities of the staff and is responsible for the day-t
to-day management of the affairs and activities of the Board;

(3) Recommend and develop plans to achieve the Board's objectives; and

(4) Provide executive secretarial services to the Board

(b) Office of Public Affairs. - The Office of Public Affairs shall supply the public, the

transportation industry and the news media with current, accurate information concerning

the work, programs and objectives of the Board

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(©) Office of Government Affairs. ~ The Office of Government Affairs shall supply
Congress and the different national agencies with information regarding the Safety
Board's activities programs and objectives
(a) Office of the General Counsel. - The Office of the General Counsel shall have the
following functions
(1) Provide legal advice and assistance to the Board and its staff components,
(2) Prepare Board rules, opinions and/or orders, and advice to all offices and
bureaus on matters of legal significance; and
(3) Represent the Board in court actions to which the Board is a party or to which
the Board is interested
(©) Office of Aviation Safety. - The Office of Aviation Safety shall have the following
functions
(1) Conduct investigations of all aviation accidents within the Board's
jurisdiction;

(2) Prepare reports for submission to the Board and release to the public setting

forth the facts and circumstances of such accidents, including a recommendation
as to the probable cause(s);
(3) Determine the probable cause(s) of accidents when delegated authority to do
so by the Board;
(4) Initiate safety recommendations to prevent future aviation accidents, and
(5) Conduct special investigations into selected aviation accidents involving
safety issues of concern to the Board.

(D) Office of Surface Transportation Safety. - The functions of the Office of Surface

Transportation Safety shall be the following

(1) Conduct investigations of highway, railroad, marine, pipeline and hazardous
materials accident within the Board's jurisdiction;
(2) Prepare reports for submission to the Board and release to the public setting
forth the facts and circumstances of such accidents, including a recommendation

as to the probable cause(s);


(3) Determine the probable cause(s) of accidents when delegated authority to do
so by the Board;

(4) Initiate safety recommendations to prevent future surface transportation

accidents; and
(5) Conduct special investigations into selected surface accidents involving safety
issues of concern to the Board.
(g) Office of Safety Recommendations, - The Office of Safety Recommendations shall
oversee the Board's safety recommendations program.
(h) Office of Research and Engineering. - The Office of Research and Engineering shall

have the following fin

(1) Provide technical advice and services;

(2) Conduct research and carry out analytical studies and tests on all aspects of the

Board's accident investigation, accident prevention and safety promotion

activities;

(3) Conduct safety studies of specific safety issues,

(4) Perform statistical analyses of transportation accident and incident data,

(5) Maintain archival records of the Board's accident investigation and safety

promotion activities and support public access to these records; and

(6) Support the Board's data processing, computing and information management

requirements,
(i) Office of Administration, -The office of Administration is responsible for the custody
and control of all Board records required to be preserved and kept, Moreover, it shall
provide administrative support for the Board in the following areas:

(1) budget;

(2) accounting and audit;

(3) personnel, training and payroll;

(4) information management and automatic data processing;

(5) property, space, communications, facilities and transportation management;


(6) printing, publications, mail, procurement, contracting, and accident inquiry

services

SECTION 7, Compensation. - The salary of the Chairman and the members of the Board
shall be the same as those of the Chairman and Members of the different Constitutional
Commissioners, They shall also be entitled to computable representation and transportation
allowances in the amount of Five Thousand Pesos (P 5,000.00) each per month, The salary of the
Chairman and Members of the Board shall not be decreased during their tenure

SECTION 8, Personnel, - Subject to the civil service laws, rules and regulations, the
Board is authorized to select, appoint, employ, and fix the compensation of such officers and
employees, including investigators, and attorneys, as shall be necessary to carry out its powers
and duties.

SECTION 9. Duties and Powers of the Board. - The primary function of the Board is to
promote safety in transportation.

(A) Duties of the Board. - The Board shall

(1) Investigate or cause to be investigated (in such details as it shall prescribe),
and determine the facts, conditions, and circumstances and the cause or probable
cause or causes of any:
(a) aircraft accident within the scope of Subsection 11 of Section 32,
Republic Act No. 776, as amended;
(b) highway accident, including any railroad grade crossing accident that it
selects;
(c) railway accident in which there is a fatality, substantial property
damage, or which involves a passenger train;
(d) pipeline accidents in which there is a fatality or substantial property
damage;
(e) major marine casualties and marine accidents, except those involving
only vessels used by the Armed Forces of the Philippines, occurring on the
navigable waters or territorial seas of the Philippines, or involving a vessel

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of the Philippines, in accordance with the regulations to be prescribed
jointly by the Board and the Secretary of Transportation and
Communication in which the Coast Guard is operating. Any marine
accident involving a public vessel and any other vessel shall be
investigated and the facts, conditions, and circumstances, and the cause or
probable cause determined and made available to the public by either the
Board or the Secretary of Transportation; and

(other accident which occurs in connection with transportation of people
or property, equipment or hazardous materials which, in the judgment of
the Board, is catastrophic, involves problems of a recurring character, or
would otherwise carry out the above-stated policy of the State, Nothing
therein shall prevent the Board from making further inquiries on accidents
already investigated by existing _accident-investigating bodies,
Furthermore, the Board may require the submission of their records,
reports, findings and recommendation of past investigation, The Board
shall be the primary government body to conduct accident investigations
under its jurisdiction, Other agencies mandated to investigate concurrently
such accidents shall coordinate with the Board in the performance of its
functions, In addition, it shall give fall support to the actions and policies
dictated by the Board during the conduct of such investigations.

Nothing therein shall prevent the Board from making further inquiries on accidents
already investigated by existing accident-investigating bodies. Furthermore, the Board may
require the submission of their records, reports, findings and recommendation of past
investigation. The Board shall be the primary government body to conduct accident
investigations under its jurisdiction. Other agencies mandated to investigate concurrently such
accidents shall coordinate with the Board in the performance of its functions. In addition, it shall
give full support to the actions and policies dictated by the Board during the conduct of such
investigations

(2) Report in writing on the facts, conditions, and circumstances of each accident

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investigated pursuant to paragraph (1) of this subsection and cause such reports to be
made available to the public at reasonable cause notice of the issuance and availability of such
reports to be published in the Official Gazette;

(3) Issue periodic reports to Congress and government agencies concerned with
transportation safety, and other interested persons recommending and advocating meaningful
responses to reduce the likelihood of recurrence of transportation accidents similar to those
investigated by the Board and proposing corrective steps to make the transportation of persons as
safe and free from risk of injury as is possible, including steps to minimized human injuries from
transportation activities

(4) Make transportation safety recommendations to national agencies and private
organizations to reduce the likelihood of recurrences of transportation accidents;

(5) Initiate and conduct special studies and special investigations on matters pertaining to
safety in transportation and human injury avoidance.

(6) Assess and reassess techniques and methods of accident investigation and prepare and
publish from time to time recommended procedures for accident investigations,

(7) Establish by regulation requirements binding on persons reporting accidents subjects
to the Board’s investigatory jurisdiction under this subsection;

(8) Evaluate, assess the effectiveness, and publish the findings of the Board with respect
to the transportation safety consciousness and efficacy in preventing accidents of other
‘government agencies, as well as promote transportation safety consciousness in both the national
and local government;

(9) Evaluate the adequacy of safeguards and procedures concerning the transportation of
hazardous materials and the performance of carriers and other government agencies charged with
assuring the safe transportation of such materials,

(10) Gather, analyze and survey, and keep data and statistics and transportation accidents;

(11) Prepare and submit annual reports which shall include specific proposals for
corrective legislation to the Department of Transportation and Communications, with copies
simultaneously furnished to the appropriate committees of the Senate and House of
Representative,

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(B) Powers of the Board. - (1) The Board, or upon authority of the Board, may member
thereof, or any officer or employee duly designated by the Chairman, may conduct such
hearings, sit and act as such times and places, administer such oaths and require by subpoena or
subpoena duces tecum the attendance and testimony of such witnesses and the production of such
evidence as the Board or such officer may deem necessary. Subpoenas shall be issued under the
signature of the Chairman, or the Vice-chairman, and may be served by and person designated
by the Chairman.

(2) Any employee of the Board, upon presenting appropriate credentials and a written
notice of inspection authority, is authorized to enter any property wherein a transportation
accident has occurred or wreckage any such accident is located and do all things therein
necessary for the proper conduct of investigation, The employees may inspect, at reasonable
times, records, files, processes, controls and facilities relevant to the investigations of such
accident, Each inspection shall commence and be completed with reasonable promptness and the

results of such inspection made available to the public.

(3) In case of contumacy or refusal to obey a subpoena, an order, or an inspection notic
of the Board or any duly designated employee thereof, by any person who resides, is found, or
transacts business within the jurisdiction of the Philippines, may be required to comply forthwith
by a court of competent jurisdiction, upon the petition of the Board. Failure to obey such an
order is punishable by such court as contempt of court
(4) The Board is authorized to enter into such contracts, leases, cooperative agreements,
or other transactions as may be necessary in the conduct of the functions and the duties of the
Board under this Section, with any government entity or any person.
(5) The Board is authorized to:
(a) Use, on a reimbursable basis or otherwise, when appropriate, available
services, equipment, personnel and facilities of the Department of Transportation
and Communication, the Department of National Defense, the Department of
Public Works and Highways and other agencies and instrumentalities of the

government in the conduct of its investigation

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(b) Employ recognized experts and consultants on the accidents under investigation who
shall be paid by compensation fixed by the Board: Provided, That not more than two
consultants shall be appointed for each incident being investigated.

(c) Create advisory committees composed of qualified private citizens and government
officials as it deems necessary or appropriate;

(a) Accept voluntary and uncompensated services notwithstanding any other provision of
law;

(e) Accept gifts or donations of money or property, including real, personal, mixed,

tangible or intangible, and Enter into contracts with public or private non-profit entities

for the conduct of studies related to any of its functions.

(6) Whenever the Board submits or transmits any budget estimates, budget request,
supplemental budget estimate, or other budget information, legislative recommendation,
prepared testimony for Congressional hearings, or comment on legislation to the President or the
Department of Budget and Management, it shall concurrently transmit a copy thereof to the
Congress, No officer or agency of the Philippine government shall have any authority to require
the Board to submit its budget requests or estimates, legislative recommendations, prepared
testimony for congressional hearings, or comments on legislation to any officer or agency of the
National Government for approval, comments, or review, prior to the submission of such
recommendations, testimony, or comments to the Congress

(7) The Board is empowered to designate representatives to serve or assist on such

committees as the Chairmen determines to be necessary or appropriate to maintain effective

liaison with executive departments. Other government agencies, and with independent standard
setting bodies carrying out programs and activities related to transportation safety.

(8) The Board, or any employee of the Board duly designated by the Chairman, may
conduct an inquiry to secure data with respect to any matter pertinent to transportation safety,
upon publication of notice of such inquiry in the official Gazette; and may require. by special or
general orders, government agencies and persons engaged in the transportation of people or
property in commerce to submit written reports and answers to such requests questions as are

propounded with respect to any matter pertinent to any function of the Board. Such reports and

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answers shall be submitted to the Board or top such employee within such reasonable period of
time and in such as the Board may determine. Copies thereof shall be made available for
inspection by the public.

() The Board may delegate any of its power and functions to the heads of the different
offices enumerated in Section 6 hereof, to further facilitate the implementation of the provisions
of this Act.

(10) Establish such rules and regulations as may be necessary to the exercise of its
powers and functions under this Act

SECTION 10, Recommendations of the Board. - The Board shall recommend to the
Department of Transportation the recall of defective conveyance and to cause the installation of
the required part or parts to make it safe, and notify not only the distributor or purchasers but
also the public of such defect. Likewise, it shall recommend the grounding of any defective
conveyance pending the investigation of the cause or nature of its defect. Wherever the Board

submits a recommendation regarding transportation safety to the secretary of transportation, he

shall respond to each such recommendation formally and in writing not later than thirty (30) days
after receipt thereof. The response to the Board by the Secretary shall indicate his intention to-

(1) initiate and conduct procedures for adopting such recommendation in full, pursuant to
a proposed timetable. a copy of which shalll be included

(2) initiate and conduct procedures for adopting such recommendation in part, pursuant to
a proposed timetable. a copy of which shall be included. Such response shall set forth in detail
the reasons for the refusal to proceed as to the remainder of such recommendation;

(3) refuse to initiate or conduct procedures for adopting such recommendation, Such
response shall set forth in detail the reasons for such refusal

SECTION 11. Use of Reports in Actions and Damages. - No part of any report of the
Board relating to any 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 report or reports,
Furthermore, the Board shall have immunity from suits arising ftom its investigation,
pronouncements and findings

SECTION 12. Seal. -The Board shall have a seal, which shall be officially recognized

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SECTION 13. Annual Report. - The Board shall report to Congress on the second week
of August of each year. Such report shall include, but shall not be limited to-

(1) a statistical and analytical summary of the transportation accident investigations
conducted and reviewed by the Board during the preceding calendar year;

(2) a survey and summary, in such detail as the Board deems advisable, of the
recommendations made by the Board to reduce the likelihood of recurrence of such accidents
together with the observed response to cach recommendation;

(3) an appraisal in detail of the accident investigation and accident prevention activities
of other government agencies charged by law with responsibility in this field; and

(4) a biennial appraisal and evaluation and review, and recommendations for legislative
and administrative action and change with respect to transportation safety

SECTION 14. Fiscal Autonomy, - The Board shall enjoy fiscal autonomy. Their
approved annual appropriations shall be automatically and regularly released.

SECTION 15. Appropriations. - The Board shall receive an appropriation in the amount
of Thirty Million Pesos (P 30,000,000,00) to finance its operation for the first year to be
appropriated out of the funds of the National Treasury not otherwise appropriated out of the
funds of the National Treasury not otherwise appropriated and thereafter such amounts as may be
sufficient to finance its operations and activities shall be incorporated in the annual General
Appropriations Act.

SECTION 16. Separability Clause. - Any portion or provision of this Act which may be
declared unconstitutional shall not have the effect of nullifying other portions or provisions
hereof, as long as such remaining portions or provisions can still subsist and be given effect in
their entirety.

SECTION 17. Repealing Clause. - All laws, decrees, orders, proclamation, rules and
regulations, or parts thereof, which are inconsistent with any of this Act are hereby repealed,
amended, or modified accordingly.

SECTION 18. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation

Approved,

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