"4 JUI. -2 A 8 :n3 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
, 
S. No. 
Introduced by Senator Biazon 
Explanatory Note 
The creation in 1967 of the Philippine Coast Guard under the Department 
of National Defense as the country's premier agency on maritime safety put into 
place the country's efforts in integrating the diverse functions of maritime safety 
administration including maritime safety, marine environmental protection, aids to 
navigation, maritime operations and maritime law enforcement. In particular, it 
was mandated to formulate, implement and enforce safety, regulatory and other 
functions, to wit: 
1. 
2. 
3. 
4. 
Seaworthiness of vessels including hull and machinery and life-saving 
appliances; 
Crew competence; 
Provision of adequate aids to navigation equipment and facilities, and; 
Provision of adequate search and rescue facilities. 
In 1998. the President through Executive Order No. 477 attached the PCG 
to the Department of Transportation and Communications (DOTC). 
To date, although it has been operating under the DOTC including its 
annual appropriations, yet the PCG is still governed by AFP rules and 
regulations. There are also questions raised on the validity of an EO amending a 
statute despite the wide recognition on the chief executive's power to 
continuously re-organize the national government. 
This bill will therefore serve not only as a curative measure but also to 
provide for the legal basis on the other aspects of the transfer such as personnel 
administration, recruitment, promotion, retirement and morale and welfare. It will 
rationalize the transfer, give more flesh to its important role in maritime safety, 
and institutionalize its personnel management policies and capability 
develooment in resDonse to the demands of the maritime public. 
\ 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
'fl4 
JliL -2 
A 8 3 3  
OF THE PHILIPPINES 
) 
First Regular Session 
., 
AN ACT 
TRANSFERRING THE PHILIPPINE COAST GUARD TO THE DEPARTMENT 
OF TRANSPORTATION AND COMMUNICATIONS AS A SEPARATE AND 
DISTINCT SERVICE, FURTHER AMENDING REPUBLIC ACT NO. 5173, AS 
AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in 
Congress assembled: 
SECTION ONE. Title. -This Act shall be known as the "Philippine Coast 
Guard Law of 2004." 
SECTION. 2. Esfablishmenf. - The Philippine Coast Guard (PCG) is 
hereby established as a distinct, armed and uniformed commissioned service 
attached to the Department of Transportation and Communications. 
The President of the Republic of the Philippines may in times of national 
emergency or war declared by Congress, however, attach the PCG under the 
Department of National Defense as a support unit. 
The PCG shall consist of uniformed and non-uniformed personnel with 
defined Coast Guard Table of Organization and Equipment, specialties, ranks, 
ratings, and plantilla positions. 
SECTION. 3. The PCG Commandant - (a) The PCG shall be headed by 
the Commandant who shall carry the rank of Admiral. He shall be appointed by 
the President from among the Flag Officers in the Coast Guard active service 
upon recommendation made by the PCG Board of flag Officers. 
(b) The Commandant shall have a term of office for a maximum period of 
three (3).years after which he shall be retired unless he is sooner terminated for 
cause or compulsory retired. Provided, That in times of war or other national 
emergency declared by Congress, the President may extend such term of office. 
(c) The Commandant may establish policies and standards for the efficient 
and effective management and operation of PCG. 
SECTION. 4. Categories of Personnel. - The PCG shall consist of the 
following categories of officers and employees. 
a) PCG officers; 
b) PCG enlisted personnel; 
c) PCG non-uniformed personnel; 
d) Probationary 2 LieutenanffEnsign 
nd 


e) Drafteedtrainees; and 
f) Midshipmenlwomen 
The phrase ” PCG uniformed personnel” as used in the Act shall refer to both ‘‘ 
PCG officers” and ” PCG enlisted personnel” unless otherwise indicated. 
SECTION. 5. Technical Service. There shall be a PCG Technical Service 
to be composed of lawyers, medical doctors, dentists, nurses and chaplains, 
including personnel whose pre-entry requires course are closely related/ allied to 
the aforementioned professional groupings. 
SECTION. 6. Personnel Administration, a) Commissionship, appointments 
and promotions of all PCG Commissioned officers shall be approved by the 
President of the Republic of the Phllippines through the Secretary, DOTC. b) 
Appointments and promotions of all PCG Non-Commissioned personnel shall be 
made by the Commandant, PCG. c) Appointments and promotions of all non- 
uniformed personnel shall be in accordance with the Civil Service Law. 
SECTION. 7. Disciplinary Actions. - In the investigation of administrative 
cases against PCG officers and enlisted personnel, the PCG shall adopt the 
military justice system until such time that it has promulgated the provisions of 
the PCG Code of Discipline, Order and Justice for PCG officers and enlisted 
personnel. The applicable rules, regulations and guidelines promulgated by the 
Civil Service Commission, on the other hand, shall govern the investigation of 
administrative cases against PCG non-uniformed employees. 
SECTION. 
8. 
Pay and Allowances. 
- 
The 
President, 
upon 
recommendation of the Commandant, PCG as endorsed by the Secretary of the 
DOTC, shall recommend to Congress a scale of salaries and allowances for 
officers and enlisted personnel of the PCG which shall be subjected to periodic 
review by a board created by the Philippine Coast Guard. Pending submission of 
such salary scale and its approval by Congress, the PCG officers and enlisted 
personnel shall automatically receive the same base pay, longevity pay, hazard 
pay, benefits and allowances and all other compensations as are presently or 
hereafter may be authorized for corresponding ranks or grades in the AFP: 
Provided, however, That such longevity pay, hazard pay, benefits, allowances 
and all other compensations referred to by this Act shalt not be subject to 
attachment, levy or execution or any tax of whatever nature. 
SECTION, 9. Active Service. - For purposes of this Act, active service of 
the PCG officers and enlisted personnel shall refer to services rendered as an 
officer/ probationary second IieutenanVensign and enlisted personnel, 
CadeVmidshipman, trainee or draftee in the PCG or in the AFP prior to the 
separation of the PCG from the Philippine Navy(PN), and services rendered as a 
civilian official or employee in the Philippine Government prior to the date of 
separation or retirement from the PCG: Provided, That services rendered as 
midshipman/ woman, probationary officer, trainee or draftee in the PCG or as 
cadet or trainee in the all shall be credited for purposes of longevity pay. 
SECTION. 10. Retirement and Health Care System. - The retirement 
system of PCG uniformed personnel shall be in accordance with P.D. No. 1638 
as amended. Compulsory retirement for officers and enlisted personnel, shall be 
upon attainment of age fifty-six (56) or thirty (30) years of accumulated 
government service, whichever is later. Upon accumulation of at least twenty (20) 
years of satisfactory active service, an officer or enlisted personnel, at his own 
request and with the approval of the President of the Philippines, and the 
Commandant, PCG, respectively, shall be optionally retired from the service and 


entitled to receive benefits provided for by law. Their retirement benefits and 
pensions shall continue to be covered by the AFP Retirement Law until such time 
that the PCG is able to establish its own retirement system. The medicalldental 
benefits and privileges shall likewise be accommodated by the AFP and 
government facilities until such time that the PCG is able to establish its own 
health care system. 
SECTION. 11. Collection of Revenues. - The PCG shall collect fees and 
charges and funds relevant to the exercise of its various regulatory and law 
enforcement functions to include light dues. 
SECTION. 12. PCG Trust Fund. - The collections mentioned in the 
preceding Section shall constitute a Trust Fund which the PCG is authorized to 
use for its operations subject only to such rules and regulations as may be issued 
by the Commission on Audit. 
SECTION. 13. Organization of a PCG Auxiliary. - The PCG may organize 
and train a civilian volunteer organization known as the PCG Auxiliary, under the 
direct control and supervision of the Commandant or any officer designated by 
him for the purpose of assisting in the promotion of safety of life and property at 
sea, the preservation of the marine environment and its resources, the conduct of 
maritime search and rescue, and maintaining aids to navigation and such other 
activities that enhance maritime community relations which include civic actions, 
youth development, and related activities. 
SECTION. 14. Rules and Regulations. - The PCG Commandant shall 
issue such rules and regulations, determine, fix andlor prescribe charges, rates 
and penalties pertinent, as may be necessary to implement the provisions of this 
Act as well as provisions of acts, presidential decrees and orders related to the 
implementation of Coast Guard functions. 
SECTION. 15. Transitory provisions. - All previous appointments and 
promotions of PCG uniformed personnel made prior to the effectivity of this Act 
shall remain valid and subsisting. 
SECTION. 16. Appropriafions. - Such amount as may be necessary to 
carry out the provisions of this Act, which are appropriated for the PCG at the 
time of the approval of this Act, shall continue to be carried in subsequent annual 
General Appropriations Acts. Thereafter, the Philippine Coast Guard shall 
prepare its own budget as an autonomous Budgeting Maritime Safety Agency 
under the Department of Transportation and Communications. 
SECTION. 17, Separability Clause. - If for any reason, any provision of 
this Act is declared unconstitutional or invalid, such parts not affected thereby 
shall remain in full force and effect. 
SECTION. 18. Repealing Clause. - All laws, presidential decrees, 
executive orders, letters of instructions, and rules and regulations that are 
inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SECTION. f9. €fectivify. - This Act shall take effect fifteen (15) days 
following its complete publication in the official Gazette or in at least two (2) 
newspapers of general circulation. 
Approved