Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15" CONGRESS

First Regular Session

House Bill No.__2382

Introduced by HON. ANTONIO T. KHO.

Explanatory Note

After more than 5,000 deaths (a conservative estimate) in two decades, many maritime
companies are still in business operating old and defective inter-island ships and vessels—one of
the just too many and multi-faced problems plaguing the maritime industry and the safety of
many Filipinos, a great majority of whom are poor, whose mode of transport is inter-island by
ship and other smaller watercrafts and vessels.

Always, the Executive Department in the past, have issued instructions to maritime
agencies to identify and implement concrete steps to forestall accidents at our seas, but year after
year, the painful stories of maritime tragedy continue, hugging our front pages and headlines.

But as the body count mounts, the finger-pointing intensifies on who should be blamed
whether the State's maritime agencies or the shipping industry. This national habit was evident
again as some 800 lives were snuffed out when the 23,000-ton M/V Princess of the Stars capsized
amid the onslaught of Typhoon Frank last year. This has been a common scene after disasters
have claimed lives and properties in our country.

According to government records, the country has a maritime safety record with an
average of more than 200 accidents every year and sea accidents in the past have been blamed
specifically on overloaded and poor maintenance of ships or ferries, lack of warning about bad
weather and ship's crew incompetence.

On the other hand, maritime authorities, blame the shipping industry for using second-
hand vessels with an average age of 25 years. Furthermore, a government development agency,
the Japan International Cooperation Agency, made a study in 2007 which stated that insufficient
navigational aids and lack of navigational marks contribute to sea accidents in the Philippines.

It is high time that the legislature, as the highest policy making body of the land, steps in
and institute the needed policies to promote maritime safety and help our maritime agencies in
effectively discharging their functions and responsibilities.

This bill's main feature is strengthening the Philippine Coast Guard by vesting it with the
primary authority of enforcing maritime safety standards and overloading rules, and undertaking


rescue operations in sea accidents.

In the country, under Republic Act No. 5173, the Philippine Coast Guard (PCG) was
created and mandated particularly to inspect and approve vessels for operation, and enforce
provisions for the safety of life and property on vessels. The Domestic Shipping Development
Act of 2004 (R.A. 9295) however, provided for the complete transfer of these functions to
Maritime Industry Authority (MARINA).

At present, MARINA, having the power to inspect vessels and all equipment on board,
works in cooperation with the PCG to ensure compliance with ship safety standards. In 2005,
these two agencies entered into a memorandum of agreement authorizing the PCG to perform,
among others, ship safety inspection services in behalf of the MARINA.

It is my humble submission that according the primary responsibility of ship safety
inspection and enforcement of maritime safety rules, standards and regulations to the Philippine
Coast Guard will greatly help prevent the loss of thousands of lives and property caused by sea
accidents every year, and it will also put the blaming game among government agencies into an
end.

This legislative initiative also includes improving safety in narrow inter-island passages
and areas with heavy sea traffic where most accidents occur. Consideration is also given to
delineating sea-lanes and implementing better monitoring, communications and life-saving
systems in these areas.

A phase-out plan for old and defective ships and random drug tests for maritime crew and
staff are also proposed.

This humble representation who comes from an island province where many of his
constituents have died and suffered through the years because of sea tragedies and defective and
poorly maintained ships and vessels, just like many others too in other island provinces of the
archipelago using inter-island water transport, strongly believe that we should not procrastinate
any lomger to correct these maladies.

In view of the foregoing, the swift passage of this bill is sought.

HO} WG T. KHO


Republic of the Philippines

HOUSE OF REPRESENTATIVES,
Quezon City

15" CONGRESS,
First Regular Session

House Bill No._ 2382

Introduced by HON. ANTONIO T. KHO

AN ACT
PROMOTING MARITIME SAFETY IN THE PHILIPPINES BY STRNGTHENING THE
PHILIPPINE COAST GUARD (PCG) AND VESTING IN IT THE PRIMARY RESPONSIBILITY
OF ENFORCING MARITIME SAFETY RULES, STANDARDS AND REGULATIONS AS WELL.
AS ANY OTHER MATTER RELATIVE TO THE SAFETY AND PROTECTION OF LIFE AND
PROPERTY OF PASSENGERS ON BOARD SHIPS AND VESSELS WITHIN PHILIPPINE
TERRITORIAL WATERS AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the “Maritime Safety Act of 2010.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to adopt measures
that ensure safe and convenient sea travel and/or transport.

SEC. 3. Objectives of the Act. - This Act shall have the following objectives:

(a) To ensure the safe, reliable and responsible operation of vessels within the maritime
jurisdiction of the country and all waters considered under the Philippine territory;

(b) To promote the safety of life and property at sea and to protect all users of the sea within the
maritime jurisdiction of the country by providing minimum standards to be applied on all water vessels
such as but not limited to the following:

1. competence of licensed masters, pilot and seafarers;

2. minimum manning level requirements of seafarers;

3, age and condition of said vessels;

4, number of passengers and/or cargoes in accordance with the duly authorized load capacity of the vessels;
S.establishment and maintenance of adequate and modern communications and all necessary navigational aids
to be manned and operated by competent personnel, including adequate and reliable life-saving devices and
equipment;

6. establishment and maintenance of rescue centers to serve as look-out points in accident-prone areas at sea and
which shall readily provide aid assistance and facilities when needed.

(©) To authorize the Philippine Coast Guard to undertake enforcement activities prior to a vessel's
departure and at any point of its voyage;

(d) To engage in search and rescue operations and call on other government/non-government units


in rendering assistance to all distressed persons or vessels either on the high seas or on Philippine waters;

(e) To provide for the investigation of marine accidents and for appropriate action following any
such investigation.

SEC. 4. Delineation of Authority/Restoration of Authority to Enforce Ship Safety and
Inspection and Other Functions. - The Philippine Coast Guard (PCG) shall be primarily responsible for
the enforcement and implementation of rules, regulations and standards pertaining to the maritime
industry, safety and related matters as formulated by the Maritime Industry Authority (MARINA), to
ensure the safe operation of all inter-island ships and vessels.

To this end, the PCG shall be restored of its authority and responsibility to perform ship safety
inspection services, issuance of Special Permit to carry dangerous cargoes/goods, performance of ship
safety enforcement functions and marine casualty investigation for Philippine-registered ships engaged in
domestic operations.

SEC. 5. Enforcement Funetions. - The PCG shall have the authority and responsibility in the
following enforcement activities prior to a ship's departure, and at any time of its voyage:

(a) To verify compliance with any of the following ship and crew documentation prior to the ship
or vessel's departure when required or applicable, such as:

1. Certificate of Ship Registry;
2. Pleasure Yacht Registration;
3. Certificate of Number;

4. Certificate of Ownership;
5. Coastwise License;
6.
1.
8
9.

Bay and River License;
Certificate of Inspection;
Special Certificate of Inspecti

. Permit to Operate Fishing Vessel
10. Special Permit to Navigate;

11, Special Permit to Carry/Load Flammable/Dangerous/Hazardous Cargoes;

12. Seafarer's Identification and Record Book (SIRB);

13. Standards of Training, Certification and Watchkeeping (STCW) Endorsement Certificate;
14. Other seafarer-related documents (e.g. licenses, training certificates, dispensation permit/s);
15. Motorboat Operator's License (MBOL); and

16. Special Permit for Small Boat Captains and Marine Diesel Engine Mechanics License.

(b) To verify compliance with the terms and conditions specified in the Certificate of Public
Convenience (CPC), Provisional Authority (PA), Special Permit (SP) or CPC exemption, particularly:

1. Route/s and schedule of trips approved by MARINA;

2. Validity of passenger insurance policy for passenger-carrying vessels; and

3. Maximum authorized passenger capacity through head counting in case there is clear indication of
overloading/overcrowding.

4, Requirement of officers and crew to wear the proper uniform while on duty.

(c) To serve and enforce the cease and desist orders (CDOs) issued by the MARINA and other
concerned government agencies on the master, owner or his agents of the ship;

(d) To issue Maritime Violation Receipt (MVR) to the master, owner or agents of the ship who


fails to comply with the provisions of relevant laws, rules and regulations on vessel safety. When the
violation warrants detention of the ship, the PCG shall request the Philippine Ports Authority in writing,
together with a copy of the MVR, to deny departure clearance of the ship in accordance with Executive
Order No. 493 and other existing laws;

(c) To undertake the issuance of the following in accordance with the rules and regulations that the
MARINA may promulgate:

Motorboat Operator's License (MBOL)

. Certificate of Inspection;

Special Certificate of Inspection;

Special Permit to Navigate/Towing Permit;

Special Permit to Carry/Load Flammable/Dangerous/Hazardous Cargoes/Goods; and
Special Permit for Small Board Captains and Marine Diesel Engine Mechanics License.

oesepe

In all of the above cases, the MARINA shall be furnished with a list of such issuances on a
quarterly basis.

(B To clear ships for departure where there is compliance with all maritime safety-related rules
and regulations and after payment of the necessary port dues and charges;

(g) To provide the MARINA a list of inspectors and issuing offices, by area of assignment, with
their corresponding qualifications including their specimen signatures as well as copies of any order or
issuance made arising from the exercise of their duties and functions;

(h) To designate vessels traffic separation scheme and/or system where appropriate;

(i) To undertake the control of movement of vessels/watercrafts during typhoons and adverse
weather conditions and to inform the concemed MARINA Regional Director and his Central Office
Action Officer and other concerned government agencies of any control undertaken on the movement of
vessels/watercrafis during such conditions;

(i) To conduct the Emergency Readiness Evaluation (ERE)/Material Readiness Evaluation
(MARE);

(k) To submit a monthly report to the Secretary of the Department of Transportation and
Communications (DOTC), copy furnished the MARINA Administrator, on the conduct of the functions
under this Act, including the submission of reports on maritime accidents and casualties.

SEC. 6. Ship Safety Inspection Service Functions. - The PCG, in order to promote safety of life
and property at sea within Philippine territory, shall have the following ship safety inspection functions:

(a) Inspection services shall be conducted by the PCG prior to the issuance of ship safety
certificates, in order to determine the compliance of such ships with applicable requirements of national
laws, rules and regulations and international conventions: Provided, That said laws, rules and regulations
and international conventions are within the jurisdiction of the PCG: Provided, further, That such laws,
rules and regulations pertain to ship safety standards;

(b) Alll ship safety certificates shall be issued by the PCG to those ships that have undergone
inspection.


SEC. 7. Weather Forecasting Technician. - All ships shall be required to have their own weather
forecasting equipment, which shall provide real time weather information and shall be independent from
that of the PAGASA. Each master of the ship shall conduct proper training to the ship's crew for the
operation and utilization of the said equipment.

SEC. 8. Adequate Communications and Life-Saving Equipment. - All ships, including other
sea vessels and crafts, shall be required to maintain and operate adequate and reliable communications,
navigational aids and life-saving equipment which shall include, among others, life vests and lifeboats,
primarily intended during emegency escapes and other situations when passengers have to leave the
vessel or ship due to greater risks or dangers while on board;

SEC. 9. Responsibility for Excess Passengers. - The responsible ship safety inspector, who, in
performance of his or her duties, allowed a domestic vessel to depart port, shall be be held accountable
for every passenger in excess of the actual physical capacity of the said vessel, and shall be subject to a
corresponding penalty as listed in Section 16 of this Act;

SEC. 10. Responsibility for Excess Gross Tonnage. - The responsible ship safety inspector shall
be held accountable for every gross tonnage in excess of the actual physical capacity of every domestic
vessel which the said the said officer, in the performance of his or her duties, allowed to depart port. Said
erring inspector shall be subject to a corresponding penalty as listed in Section 16 of this Act;

SEC. 11. Random Drug Tests. - A monthly random drug testing of shipping crews and officers
for all passenger inter-island ships and other vessels shall be carried out by the Dangerous Drugs Board
(DDB), in coordination with the Philippine Coast Guard:

SEC. 12. Phase-out Plan. - The Philippine Coast Guard and Maritime Industry Authority
(MARINA) shall jointly formulate a phase-out plan for passenger inter-island ships and other watercrafis
and vessels in accordance with international and universally accepted standards relative to its
seaworthiness and in close coordination with the joint committees on transportation of the Senate and the
House of Representatives; Provided, That all ships and vessels which are already twenty (20) years old
based from the time it was first registered as a common carrier shall be barred from plying any maritime
route servicing both passengers and cargo three (3) years from the promulgation of this Act; Provided,
Further, that in computing the age of the vessel if the same was imported, the time that it was used as a
common carrier in its country of origin and in any other country shall also be considered, aside from the
time it was first used in the Philippines.

All ship-owners associations and representatives from groups or associations operating watercrafts
and maritime vessels, as well as international maritime authorities and experts and from the country's
maritime schools and institutions shall be adequately consulted relative to this plan.

SEC, 13. Review of Standards for Seamen and Maritime Professionals. - The Professional
Regulations Commission (PRC) shall review the standards and implementation of training and licensing
rules and regulations governing seamen and maritime professionals manning domestic ships. The
Philippine Coast Guard and the Maritime Industry Authority shall also provide a system of assessment
and review of those manning smaller vessels and watercrafts which shall include the institutionalization
of an accreditation system in lieu of a license normally given to maritime professionals.


SEC. 14. Administrative Powers in Marine casualties/Accidents. - The PCG, with its function
to investigate and inquire into the causes of marine accidents and casualties and marine pollution
incidents, shall determine appropriate administrative liabilities, fines, and penalties of responsible parties.
It may promulgate policies, rules and regulations necessary for the conduct of the same. It shall be
recognized that:

a) The PCG has the power and authority to hear and adjudicate any complaint made in writing
involving any violation of R.A. 9295;

b) Under Republic Act No. 5173, Presidential Decree No. 601 and the Philippine Merchant
Marine Rules and Regulations, the PCG has the power and authority to convene the Board of Marine
Inquiry and Special Boards of Marine Inquiry;

©) The jurisdiction of the Board of Marine Inquiry is to conduct administrative hearings to
determine the causes of marine casualties or incidents upon receipt of a marine protest and to review on
appeal the results and findings of Special Boards of Marine Inquiry;

4d) The jurisdiction of the Special Boards of marine Inquiry is to conduct administrative hearings
to determine the causes of marine casualties in their geographical areas of jurisdiction.

SEC. 15, Ship Safety Inspection Services - The designated ship safety inspectors of the PCG
shall meet the qualification requirements prescribed for ship safety inspectors under the existing ship
safety inspection system. Such qualified ship safety inspectors shall be fully familiar with the pertinent
safety rules and regulations for domestic ships and undergo orientation/training on ship safety inspection.
All inspectors of the PCG performing ship safety inspection services at locations outside 100 kilometer
radius from their official stations shall be provided reimbursement of travel expenses in accordance with
Executive No, 298, subject to the usual accounting and auditing rules and regulations. In the conduct of
ship safety inspection services by the PCG in areas within 100 kilometer radius from the official stations
of their inspectors, a reasonable amount to cover gasoline expenses, supported by official receipts shall be
allowed for reimbursement, as authorized by a valid travel order issued for the purpose.

SEC. 16. Penalties for Specific Violations. - Loss of lives and properties resulting from a ship
safety inspector's violation of this Act shall be punished accordingly:

a) Simple Negligence - shall be punished by imprisonment of six (6) months and one (1) day to
one (1) year, at the discretion of the court;

b) Gross Dereliction of Duty — shall be punishable by imprisonment of one (1) year and one (1)
day to three (3) years, at the discretion of the court;

c) Abandonment of Post — shall be punishable by imprisonment of three (3) years and one (1) day
to six years at the discretion of the court.

SEC. 17. Penalties for Non-Compliance to Maritime Safety - The loss of lives arising from any
non-compliance with the rules, standards and regulations pertaining to maritime safety by the ship's
master crew, agents or owner shall be punished with a fine of not less than One Million Pesos (PhP
1,000,000.00) but not more than Five Million Pesos (PhP 5,000,000.00) and by imprisonment of one (1)
year and one (1) day to three (3) years, at the discretion of the court; Provided, That, in case the violation
is committed by an association or corporation, the penalty herein prescribed shall be imposed on the


responsible officers or directors thereof.

In the case of motorized bancas and similar motorized watercrafts and vessels, the loss of lives
shall be punished with a fine of not less than One Hundred Thousand Pesos (PhP 100,000.00) but not
more than Three Hundred Thousand Pesos (PhP 300,000.00) and by imprisonment of the same penalty as
provided in the preceding section.

In the case of the captain of the ship or vessel, including motorized banca or any other similar
motorized watercrafts, he shall further be disqualified perpetually from acting as an officer of such vessel,
motorized banca or other similar motorized watercraft.

In all cases, any penalty that may be imposed shall be without prejudice to civil and/or criminal
liability under existing laws.

SEC. 18, Appropriation - The funds needed for this purpose shall be taken from the
appropriations of the Department of Transportation and Communications. Thereafter, such amount
necessary for the implementation of this Act shall be included in the annual General Appropriation Act.

SEC. 19, Separability Clause - If any provision of this Act shall at any time be found to be
unconstitutional or invalid, the remainder thereof not affected by such declaration shall remain in full
force and effect.

SEC. 20. Repealing Clause - All laws, decrees, rules or regulations inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 21. Effectivity Clause — This Act shall take effect after fifteen (15) days following its
complete publication in two (2) newspapers of general circulation.

Approved,