NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S. No. ^530
Senate
of tijo it . ftii’V'
24 FE8 -6 A 8 :27
RtCEiV'QG'
Introduced by SENATOR RONALD "BATO" DELA ROSA
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST FUND, 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The Philippine Coast Guard (PCG) is mandated to, among others, enforce 
regulations in accordance with all relevant maritime international conventions, 
treaties or instruments and national laws for the promotion and safety of life 
property at sea within the maritime jurisdiction of the Philippines and conduct port 
state control implementation, and to assist in the enforcement of laws on fisheries, 
immigration, tariff and customs, forestry, firearms and explosives, human trafficking, 
dangerous drugs and controlled chemicals, transnational crimes, and other 
applicable laws within the maritime jurisdiction in the Philippines.1
In compliance with its mandate and in the whole-of-nation approach being 
implemented by the national government in addressing the regional security 
challenges posed by territorial disputes in the West Philippine Sea,2 the PCG has 
been one of the country's front liners in protecting the country's sovereign rights 
with respect to its exclusive economic zone.
1 Section 3 (a) and (I) of Republic Act No. 9993 otherwise known as the "Philippine Coast Guard Law 
of 2009."
2 https: //WWW. pna .gov. ph/articles/1080463


Considering the current developments in the West Philippine Sea which 
includes harassment by the Chinese Coast Guard through engaging in "dangerous 
maneuvers" aimed at obstructing resupply missions to Ayungin Shoal and other 
threats in our maritime jurisdiction, there is a need to modernize the PCG in order 
for them to effectively carry out their mandate and to further realize the whole-of- 
nation approach in addressing the dispute over the West Philippine Sea.
In view thereof, the passage of this measure is earnestly sought.
ROSA


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S. B. No. 2530
s?t'ua.c
of the ’
24 FEB-6 A8:27
RECEIVED BV:
d
Introduced by SENATOR RONALD "BATO" DELA ROSA
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST FUND, 
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as the "Philippine Coast
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Guard Modernization Act."
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Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
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develop the Philippine Coast Guard (PCG), and ensure the continued protection and
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defense of our maritime border, economy, and environment. Toward this end, the
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Modernization Program under this Act shall develop and enhance the capabilities of
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the PCG to effectively perform under the following functional areas:
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a. Maritime Safety;
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b. Maritime Search and Rescue;
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c. Maritime Security;
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d. Maritime Law Enforcement; and
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e. Maritime Environment Protection.


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Sec. 3. Philippine Coast Guard Modernization Program. - The PCG shall
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implement the Philippine Coast Guard Modernization Program, hereinafter referred
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to as the "Program"; Provided, however. That payments for the amortization of
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outstanding multi-year contract obligations incurred under Section 7 of this Act may
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extend beyond this period.
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Sec. 4. Objectives. - The Program shall be implemented in accordance with
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the following objectives:
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a. Minimize, if not totally eliminate, accidents at sea;
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b. Reduce the search efforts and hasten response time during search and
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rescue operations;
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c. Contribute substantially to securing maritime zones and territorial waters
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from terrorism, lawlessness and other threats to national security and
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territory;
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d. Effectively contribute to the enforcement of the Philippine criminal and
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other special laws within maritime zones and territorial waters; and
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e. Minimize, if not totally eliminate, pollution in the maritime zones or areas
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and hasten response time in cases of emergencies.
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Sec. 5. Components of the Modernization Program. - The components of the
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PCG Modernization program shall be divided into four tiers in line with its
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capabilities, as follows:
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(a) First Tier: Development of PCG Response Bases and Enhancement of
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Maritime Domain Awareness Capabilities.
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i. Response Bases. -The PCG modernization program shall entail the
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construction and development of permanent response bases to house all


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PCG operational units, such as Marine Laboratories, Search and Rescue 
Vessels (SARVs), Offshore Patrol Vessels (OPV), Maritime Pollution 
Vessels (MARPOL vessels), and others to allow the PCG to rapidly 
respond to maritime emergency calls in the most efficient and effective 
manner;
ii. Maritime Domain Awareness (MDA) Capabilities. -The PCG 
modernization program shall entail the acquisition and upgrade of 
equipment and systems such as Radar Stations, Lighthouses, Unmanned 
Aerial Vehicles, Unmanned Underwater Vehicles, and SARVs to enhance 
MDA capabilities;
(b) Second Tier: Development of Infrastructure and Interdiction Capabilities.
i. Interdiction Capabilities. - The PCG modernization program entails the 
acquisition of state-of-the-art vessels and equipment to enhance 
interdiction and law enforcement capabilities;
ii. Coast Guard Stations and Substations. - The PCG modernization 
program entails the improvement and development of infrastructures 
and facilities of Coast Guard stations and substations: Provided, that 
each shoreline municipality shall have its own substations, be fully 
equipped, and have constant or uniform stations: Provided further, that 
substations will serve as its smaller unit;
iii. MARPOL (Maritime Pollution) Vessels. - The PCG modernization program 
shall acquire MARPOL vessels to strengthen the marine environment 
protection mandate of the PCG.


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(c) Third Tier: Acquisition and Development of Patrol Vessels and Air 
Capabilities
i. Offshore Patrol Vessels. - The PCG modernization program shall develop 
and acquire new OPVs to strengthen coastal defense and the 
management of the country's EEZ. The acquisition of OPVs shall enable 
the PCG to:
1. Patrol, detect, intercept, engage, and challenge, if necessary, any 
vessel illegally intruding into or passing through the Philippines' EEZ, 
up to areas near or around the Phiiippine territorial limits;
2. Provide transportation of personnel and material in times of natural 
disaster and rescue operations;
3. Conduct search and rescue operations during maritime incidents; and
4. Support the Philippine naval armed forces.
ii. Aircrafts. - The PCG modernization shall acquire and develop aircrafts to 
enable the PCG to:
1. Strengthen maritime and airspace security in different areas and 
stations;
2. Patrol, detect, and challenge, if necessary, any vessel and aircraft 
illegally intruding into or passing through the Philippines' EEZ 
management, up to areas near or around the Philippine territorial 
limits;
3. Support its operations as a law enforcement arm and a nautical 
service; and
4. Support the Philippine naval armed forces.


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(d) Fourth Tier: Infrastructure and Facilities Development.
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i. Development and Improvement of Training Facilities. -The PCG
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modernization program shail entail the development and improvement
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of training facilities for study, training, professional progress, and
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exercise. This shall allow the PCG to obtain game changing equipment
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and facilities that will assist and empower PCG personnel;
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il. Construction and Deveiopment of Shipyards. - The PCG modernization
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program shall provide for the construction and development of
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shipyards that can contribute to regional industrial infrastructure and
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national security interests; and
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iii. Construction and Deveiopment of Hangars. - The PCG modernization
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program shall entail the construction and expansion of hangars that
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serves as protection from the weather and direct sunlight, and for
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maintenance, repair, production, assembly, and storage of aircraft.
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SEC. 6. Period of implementation. - The modernization program under this Act
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shail be implemented every three (3) years, reflecting the four (4) tiers as stated
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under Section 5 of this Act, for a total period of twelve (12) years: Provided,
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however, That payments for the amortization of outstanding multi- year contract
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obligations incurred under this Act may extend beyond this period.
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SEC. 7. Submission to Congress. - Within ninety (90) days from the effectivity
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of this Act, the President, upon the recommendation of the Secretaries of the
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Department of Transportation, Department of Budget and Management, and the
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Department of Finance, shali submit the PCG Modernization Program to Congress. It
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shall contain the following:


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i. Personnel strength and inventory of facilities and equipment during the
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various phases of the modernization program;
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ii. 
Modernization projects and activities to be undertaken, including any
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major weapon and non-weapon equipment and technology acquisitions,
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any major infrastructure construction or improvement to be undertaken,
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and the particular objectlve(s) and component(s) under Sections 3 and 4,
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respectively, of this Act to which such intended acquisition, construction or
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improvements belongs; and
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iii. 
Priorities, schedules, and phases of implementation of modernization
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projects and activities; and
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iv. 
Estimated average cost for each modernization project or activity to be
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undertaken.
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Thereafter, the PCG shall, through the DOTr Secretary, submit to the Office of
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the President and Congress, an annual report containing the progress and status of
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the implementation of the BFP Modernization Program.
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Sec. 8. Self-Reliance Program. - In the implementation of the Program, the
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PCG shall, as far as practicable, give preference to Filipino contractors and suppliers,
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and secondly to foreign contractors or suppliers, wiiling and able to locate a
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substantial portion of, if not the entire, production process of the terms involved
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with the Philippines.
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In order to generate local employment opportunities, and enhance technology
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transfer to the Philippines, the Secretary of the DOTr shall, as far as practicable,
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incorporate in each contract or agreement special foreign exchange reduction


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schemes such as countertrade, in-country manufacture, co-production, or other
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innovative arrangements or combination thereof.
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The PCG shali iikewise ensure that in negotiating ail appiicable contracts or
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agreements, provisions on the transfer to the PCG of the principai technology
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involved, as well as the training of the PCG personnel to operate and maintain such
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equipment and technology are incorporated therein.
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Sec. 9. Philippine Coast Guard Modernization Trust Fund. - There is hereby
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created a trust fund to be known as the "Philippine Coast Guard Modernization Trust
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Fund" to be administered by the Secretary of the DOTr in accordance with iaws,
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rules and regulations. The trust fund shali be used exciusively for the Program,
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exciuding saiaries and ailowances. The trust fund shali be funded out of the
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foliowing:
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a. Appropriation for the Program;
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b. The proceeds from the saie, ease, or joint development of coast guard
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properties and iighthouse reservations, as may be authorized by
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Congress, inciuding such immovabie and other faciiities as may be found
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therein, not covered by the Bases Conversion and Development Authority,
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as provided for in Republic Act No. 7227, as amended, otherwise known
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as the "Bases Conversion and Development Act of1992";
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c. Share of the PCG from the proceeds of the saie of the coast guard
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properties provided for under the Bases Conversion and Development Act
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of1992;
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d. The proceeds from the disposal of excess of uneconomically repairable
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equipment and other moveabie properties in the PCG arsenai;


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e. Funds from budgetary surplus, if any, as may be authorized by Congress
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subject to the provisions of Section 13 of this Act;
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f. Loans, grants, bequests, or donations from locai and foreign sources,
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specificaliy earmarked for the Program;
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g. Dues, fines, and penaities collected by the PCG in the exercise of its
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functions; and
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h. All interest income of the trust fund.
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Sec. 10. Equipment Acquisition Per Function Area. - In order to further
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speciaiize PCG capabilities, equipment acquisition shall be initiated within the
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respective functional areas as mentioned in Section 2 of this Act but integrated into
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the Program to ailow interoperability and ensure a greater degree of reiiability.
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Sec. 11. Contract Negotiation. - The procurement process shall be governed
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in accordance with Republic Act No. 9184, otherwise known as the "Government
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Procurement Reform Act". The procurement process shali be exercised by the PCG
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General Headquarters, unless delegated to the next lower-management by the PCG
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Commandant.
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Sec. 12. Progress Report. - The Secretary of the DOTr shall submit to the
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President and Congress, an annual report on the status of the Philippine Coast Guard
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Modernization Act Trust Fund, as provided for in Section 9 of this Act, not later than
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the end of the first quarter of the succeeding year.
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The Commandant of the PCG shail also submit to the President and Congress,
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an annual status report containing the process of the impiementation of the
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modernization program under this Act, including the PCG modernization activities


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implemented prior to the approval of this Act not later than the end of the first
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quarter of the succeeding year.
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Sec. 13. Appropriations. - The amount necessary to implement the provisions
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of this Act shall be sourced from the PCG Modernization Trust Fund as provided in
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Section 9 of this Act. In addition, the annual appropriations for the Program shall
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include the amount necessary to support the funding requirements for all
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modernization projects submitted to the Congress. The funds to be appropriated to
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implement the provisions of this Act shall be included in the General Appropriations
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Act under the DOTr.
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Sec. 14. Joint Congressionai Oversight Committee. - A joint Congressional
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Oversight Committee is hereby created to monitor and oversee the implementation
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of the provisions of this Act. It shall be composed of six (6) senators and six (6)
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representatives to be appointed by the Senate President and the Speaker of the
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House of Representatives, respectively. It shall be co-chaired by the Chairperson of
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the Committee on Transportation for both Houses. The minority parties of both
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houses shall have at least two (2) representatives therein.
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Sec. 15. Sunset Review. - Five (5) years after the effectivity of this Act, the
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Joint Congressional Oversight Committee shall conduct a systematic evaluation of
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the accomplishments and impact of this Act as well as the performance and
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organizational structures of the PCG.
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Sec. 16. Separability Clause. - If any provision of this Act is declared invalid or
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unconstitutional, the remainder of this Act or any provisions not affected thereby
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shall remain in effect.


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Sec. 17. Repealing Clause. - All other laws, decrees, executive orders and
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rules and regulations contrary to or inconsistent with the provisions of this Act are
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hereby repealed or modified accordingly.
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Sec. 18. Effectivity. - This Act shall take effect after fifteen (15) days from Its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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