Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

no 2463

House

Introduced by Hon. Nelson L. Dayangl

EXPLANATORY NOTE

Webster's dictionary defines “disaster 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 country’s resources and cause grief to the family and friends of the victim.

Recent events have shown that the transportation industry has experienced several
major catastrophies. In the land transportation sector, a public utility bus loaded with
passengers was washed away into a river in Isabela province by rampaging floodwaters
The most recent tragedy that hit the transportation industry was the crashlanding into the
waters of Manila Bay of Laoag Airlines Fokker plane where at least fourteen (14) of its
passengers perished.

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 the 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
impirtial 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

No government agency can properly perform such functions 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 regulation
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 believed that the NTSB will be an effective vehicle for the
realization of such a need

Therefore, the passage of this bill is strongly recommended

ANGHIRANG



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No. 2463

Introduced by Hon, Nelson L. Dayanghirang

ANACT
CREATING A NATIONAL TRANSPORTATION SAFETY BOARD,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be cted by the, Senate and House of Representatives of the Philippines in Congress

assémbled.

SECTION 1, Short Title. — This act shall be known as the "National
‘Transportation Safety Act of 2010."

SECTION 2. Declaration ~ 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 independent agency herein after referred to as the Board, to implement
the foregoing policy of the State For
administrative purposes, the Board —shall_~—stbe_-— attached tothe
office of the President.

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;

(©) 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 Education. - The Board shall be composed of five (5)
full-time 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 musi 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 temporary or
acting capacity. Any member of the Board may be removed by the President for
inefficiency, neglect of duty, malfeasance office in 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 employed by the Board; the distribution of business among any
administrative units of the Board: and the use and expenditures of funds. The Vice-
Chairman 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 distinct and appropriate staffed bureaus,
divisions, or offices to investigate and report oil 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 oil 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 functions:


(a) Office 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 shalll 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-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

(©) 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

(d) Office of the General Counsel. — The Office of the General Counsel shall have
the followings functions

qa) 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.

(c) Office of the 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
ta do so by the Board,

(4) _ Initiate safety recommendations to prevent future aviation accidents-, and


) Conduct special investigations into selected aviation accidents
involving safety issues of concer to the Board.

(0) 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

(@ Office of Safety Recommendations. — The Office of Safety Recommendations shall
oversee the Board’s Safely recommendations program

(h) Office of Research and Engineering. - The Office of Research and Engineering shall
have the following functions:

(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 proces
management requirements.

g, computing and information

() 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 ing

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 (1)
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 tile compensation of such
officers and employees, including investigators, and attorneys, as shall be necessary to
carry oul 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

(a) aircraft accident within the scope of Subsection II 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, substantial property damage;


(e) Major marine casualties and marine accidents, except those involving only
% vessels used by Armed Forces of the Philippines, occurring on the navigable
waters or territorial of the seas of the Philippines, or, involving a vessel 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

(D 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 oil
accidents already investigated by existing _accident-investigating bodies
Furthermore, the Board may require the submission of their records, reports,
findings and recommendation of past investigat

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 the Board the performance of its functions, In
addition, it shall give full to the actions and policies dictated by the Board during the
conduct of such investigation

(2) Report in writing oil the facts, conditions, and circumstances of each
accident investigated pursuant to paragraph 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
Gavette,

(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 sale 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 oil 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 assurin® 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 the
corrective legislation to the Department of Transportation and Communication, with copies
simultaneously furnished to the appropriate committees of the Senate and House of
Representative; .

(B) Powers of the Board. — (\) 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 fecum 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 inspection made
available to the public.

(3)In case of contumacy or refusal to obey a subpoena, an order, or an inspection
notice of the Board or duly designated employee thereof, by any person who resides, is found, or
within 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 all order is punishable by such court as contempt of court.

(4) File 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 and 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 the conduct of
its investigation

(b) Employ recognized experts and consultants oil 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

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

(4) 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

(f) 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 oil
legislation to the President or the Department of Budget and Management, it shall
currently 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 oil 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 oil
such committees as the Chairman determines to be necessary or appropriate 1o 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 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


(9) The Board may delegate all 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, Recommedations 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
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 indicate his intention to —

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

(2) initiate and conduct procedures for adopting such recommendations in
part, pursuant to a proposed t;metable, a copy of which shall be included
Such response shalll set forth in detail the reasons of 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
from its investigation, pronouncements, and findings

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

SECTION 13. Annual Report. — The Board shall report to Congress oil 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 a
conducted and reviewed by the Board during the proceeding 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 each
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
with and administrative action and change with respect to transportation
safety.

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

SECTION 15. Appropriations. — The Board shall receive “an appropriation in the
amount of fifty Million Pesos (P50, 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
call 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. This Act shall take effect fileen (15) days afer its
publication in the Official Gazette or in at least two (2) newspapers of general circulation

Approved,