Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3637

AN ACT ESTABLISHING THE PHILIPPINE SPACE DEVELOPMENT AND UTILIZATION
POLICY AND CREATING THE PHILIPPINE SPACE AGENCY (PSA) AND DEFINE THE
PURPOSE AND SCOPE OF ITS ACTIVITIES.

Introduced by Hon. Erico Aristotle C. Aumentado and

Hon. Seth Frederick P. Jalosjos

EXPLANATORY NOTE

‘Space has always been a source of fascination and inquiry for humanity. As
one of the oldest body of knowledge, space science has always challenged mankind
into discovery and exploration of the Earth, and to a greater extent, the Universe. In
return, it has produced numerous practical benefits that enabled mankind to improve
its way of living and increase survivability. Space technology has become ubiquitous
that many modern activities would not operate without space systems, such as
satellites, to provide capabilities in communications, environmental monitoring,
navigation, disaster assessment, defense and security. Thus, space infrastructure
and capabilities is an indispensable asset of society and an essential requirement for
any modern country

Since the beginning of the new millennium, an increasing number of countries
are striving to gain a foothold in space. Space-faring countries have evolved from a
small elite club of nations relying on strong aerospace and defense industries, to a
broader group of advanced and developing countries with very diverse capabilities
In response the growing need for secure and independent access to space, there is


an urgent need for the Philippines to establish its own national space policy and
space agency. As a developing country and emerging economic powerhouse in the
Asia-Pacific region, it is crucial for the Philippines to embark in the efficient utilization
of space science and technology applications to address various national
development and security issues and keep up with the rest of the world that is
gradually becoming more space-capable.

The creation of a national space policy to serve as the Philippines’ primary
strategic roadmap for space development will embody the goal of the country to
become a space-capable and space-faring nation. Furthermore, the establishment of
a national space agency responsible for addressing space-related issues, advance
space science and technology research, coordinate all national space activities, and
provide a framework for harmonious cooperation will ensure that the country’s space
development goals are realized. It further affirms the country's commitment to
achieve space capabilities and cooperate with the rest of the world in the peaceful
utilization of space. With a strong national space policy and agency, the Philippines
can become a significant member and contributor to the global space community in
the future. It can provide benefits to Filipinos, not just in the economic sense, but
also in terms of societal benefits and social inclusivity. Thus, a national space
program aimed at changing the Philippines into a space-faring nation is worthwhile
and truly beneficial for the country, serving the best interest of the Filipino people
and the rest of mankind.

In view of the foregoing considerations, passage of this important piece of legislation
is urgently sought.

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HON-ERICO_ARISTOT AUMENTADO HON. SETH FREDERICK P:-JALOSJOS™

Bohol, 2” District “ Zamboanga del Norte, 1" District



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3637

HOUSE BILL NO.

AN ACT ESTABLISHING THE PHILIPPINE SPACE DEVELOPMENT AND UTILIZATION
POLICY AND CREATING THE PHILIPPINE SPACE AGENCY (PSA) AND DEFINE THE
PURPOSE AND SCOPE OF ITS ACTIVITIES.

Introduced by Hon. Erico Aristotle C. Aumentado and Hon. Seth Frederick P. Jalosjos

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

SECTION 1. Short Title.- This Act shall be known as the “Philippine Space Act of 2016,”
(PhilSA).”

SECTION 2. Declaration of Policy.- It is hereby declared the policy of the State:

(a) To safeguard Philippine sovereignty, territorial integrity, Philippine interest, and the
tight to self-determination as mandated by the Article Il Section 7 of the 1987
Constitution;

(b) To support and commit to the development of science and technology that will foster
patriotism and nationalism and accelerate social progress, such as the development
of space technology and applications for its security and for the benefit of its citizens;

(c) To ensure access to space and its environs as a sovereign right and stipulates the
need to create a national strategy for space development;

(d) To recognize that there is an urgent need to create a coherent and unified strategy
for space development and utilization to keep up with other nations in terms of space
science and technology;

(e) To ensure that the Philippines has official representation in the international space
community for establishing cooperation agreements and linkages on space
development;

(f) To ensure that the Philippines abides by the various international space treaties and
principles promulgated by the United Nations and is an active participant in the
international space community;


SECTION 3. Definition of Terms. — As used in this Act the following terms are defined as
follows:

(a) PhilSA shall refer to the Philippine Space Agency created by virtue of this Act.

(b) Space Science and Technology Applications or SSTA shall mean the scientific
principles and their applications to space science, engineering and other allied fields

(c) Satellites include all objects launched into Earth orbit and artificial objects to be
placed in orbit of celestial bodies or conduct space exploration.

SECTION 4.-The Philippine Space Development and Utilization Policy.The Philippine Space
Development and Utilization Policy, or the Philippine Space Policy, will serve as the
country’s primary strategic roadmap for space development and embodies the country's
central goal of becoming a space-capable and space-faring nation within the next decade. It
shall focus on areas of SSTA that would address national issues, promote the efficient
utilization of space assets and resources, establish capacity-building measures for human
resources development and enhance international cooperation.

SECTION 5. Framework of the Space Policy.- The Philippine Space Policy will focus on six
(6) Key Development Areas (KDA) for SSTA development to ensure the State's sustained
progress:

a) National Security and Development — The Philippines will focus on space
applications that can preserve and enhance the country’s national security and
promote development that is beneficial to all Filipinos;

b) Hazard Management and Climate Studies — The Philippines will develop and
utilize space science and technology applications to enhance its hazard
management and disaster mitigation strategy as well as ensure the nation’s
resiliency to climate change:

c) Space Research and Development — To spur rapid scientific growth, the

Philippines will focus on conducting research and development endeavors in vital

areas of space science, technology and allied fields;

Space Industry Capacity Building — The Philippines will create a robust and

thriving space industry to support the country's space program through private

sector involvement and cooperation;

e) Space Education and Awareness - The Philippines aims to establish a

sustainable pool of trained space scientists, engineers and communicators that

will be critical for the country’s future space program and increasing public
awareness on its value and benefits;

International Cooperation — Through international partnerships and collaborations,

the Philippines will become a key player in the ASEAN and global space

community by providing significant contributions and capabilities on space
science and technology applications;

d}

SECTION 6. Creation of the Philippine Space Agency (PSA). - A Philippine Space Agency,
hereinafter referred to as the “PhilSA’, is hereby established as the central government
agency addressing all national issues and activities related to space science and technology
applications


SECTION 7. Mandate. - The PhilSA shall be the primary policy, planning, coordinating,
implementing, and administrative entity of the Executive Branch of the government that will
plan, develop, and promote the national space program in line with the Philippine Space
Policy.

SECTION 8. Powers and Functions. — The PhilSA shall exercise the following powers and
functions:

1 Policy and Planning and Coordination

a. Assist the State in the creation, development and implementation of national
and international space policies;

b. Plan, direct, manage and implement programs and projects relating to
scientific space research and development and the application of space
technology;

¢. Take hold of money, securities or other personal or moveable property by gift
‘or bequest and expend, administer or dispose of anysuch money, securities or
property subject to the terms, if any, on which the gift or bequest was made in
such manner as shall best promote the PhilSA’s objectives;

d. Implement the Philippine Space Development and Utilization Policy;

e. Coordinate all space activities of various sectors and stakeholders in the
Philippines;

f. Provide appropriate and accurate advice to the President of the Philippines
and other government agencies on space-related issues and concerns;

I. Improved Public Access and Resource.- Sharing
a. Develop, construct, acquire, manage, maintain and operate space research
development and operation facilities and systems on behalf of the Philippine
government for use of various government agencies:
b. Assist Departments and other agencies of the State in the utilization of SSTA
to aid in the performance of their respective mandates and duties;

Ill. Research and Development

a. Perform basic and applied research and development relating to SSTA in
collaboration with universities, industries and other institutions;

b. Design, develop and construct space systems and facilities necessary thereof,
as well as launch, track and operate the satellites on behalf of the Philippine
government;

c. Promote the growth of space science and technology through research and
development;

IV. _ Education and Capacity Building
a. Establish programs that would develop space education and promote public
awareness;
b. Provide grants and contributions in support of programs or projects relating to
scientific or industrial space R&D and application of space technology;
©. Provide services and facilities for the use by entities conducting academic
R&D relating to SSTA;


V. Industry Development

a. Promote the development of a robust and vibrant local space industry and
economy;

b. Promote the transfer and diffusion of space technology throughout the
Philippine industry;

¢. Encourage the commercial exploitation of space capabilities, technology,
information, facilities and systems.

d. License, sell or otherwise make available any patent, copyright, industrial
design, trademark, trade secret or other like property controlled;

e. Disseminate the results of R&D activities and promote the utilization thereof,
except when information is deemed confidential for national welfare and
security and for the protection of intellectual property rights;

Vi. International Cooperation
a. Cooperate with space-related agencies of other countries in the peaceful use
and development of space;
b, Enter into contracts, memoranda of understanding/agreement or other
arrangements in behalf of the State:
c. Establish and maintain linkages with other national space agencies and
organizations;

SECTION 9. Composition. — The PhilSA shall be an attached agency of the Office of the
President for purposes of policy and program coordination, to ensure alignment in national
policies and priorities. It shall headed by a Director General. The PhilSA proper shall be
composed of the Office of the Director General, the Offices of the Deputy Directors and
various Divisions to be created as deemed necessary.

SECTION 10. Director General of the PhilSA. — The Director General shall have the rank
and compensation of a Cabinet Secretary and shall be appointed by the President, subject
to the confirmation by the Commission on Appointments. The Director General shall have
the following functions

a) Provide executive direction and supervision over the entire operations of the

PhilSA and its attached units;

Establish policies and standards for the effective, efficient and economical

operation of the PhilSA, in accordance with the programs of the government;

Review and approve requests for financial and manpower resources of all

operating offices of the PhilSA;

Designate and appoint officers and employees of the PhilSA, excluding the
Deputy Directors, in accordance with the civil service laws, rules and regulations;
Exercise disciplinary powers over officers and employees of the PhilSA in

accordance with law, including their investigation and the designation of a

committee or officer to conduct such investigation;

f) Coordinate with other Departments, agencies and public and private interest
groups, including non-government organizations (NGOs) and people's

organizations (POs) on PhilSA policies and initiatives;

Prepare and submit to the President through the Department of Budget and

Management (DBM) an estimate of the necessary expenditures during the next

b)

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d

e)

g


fiscal year, on the basis of the reports and estimates submitted by the divisions
and offices under him/her:
h) Serve as a member of the Government Procurement Policy Board (GPPB) as
established by Republic Act No. 9184;
i) Serve as the Presidential Adviser on Space Matters and advise the President on
the promulgation of executive and administrative orders and formulation of
regulatory and legislative proposals on matters pertaining to SSTA development;
Formulate such rules and regulations and exercise such other powers as may be
required to implement the objectives of this Act: and
Perform such other tasks as may be provided by law or assigned by the
President

k)

SECTION 11. Deputy Directors. - The Director General shall be assisted by three (3)
Deputy Directors with the rank and compensation of a Department Undersecretary who
shall be appointed by the President upon the recommendation of the Director General:
Provided, That two (2) of the Deputy Directors shall be career executive officers.

SECTION 12. Qualifications. No person shall be appointed Director General or Deputy
Director of the PhilSA unless he or she is a citizen and resident of the Philippines, of good
moral character, of proven integrity with, with an advanced degree in Space Science,
Astronomy, Physics, Engineering or related fields of study, with at least five (5) years of
competence and expertise in any of the following: astrophysics, space science, aerospace
engineering, space systems engineering, remote sensing space industry, or human capital
development in the SSTA sector.

SECTION 13. Transfer of Astronomical and Space-related Functions — To consolidate the
functions of PSA the following office / units shall be transferred from its parent agency;

a) Philippines Aerospace Development Corporation, Department of Transportation and
Communication (DOTC)

b) Manila Planetarium, National Museum

©) Philippines Space Education Institute (DOST-SE1)

Non-Diminution of Mandates — Nothing in this Act shall diminish the functions and
responsibilities of the support agencies

SECTION 14. Separation and Retirement from Service. - Employees who are separated
from service within six (6) months from the effectivity of this Act as a result of consolidation
and/or reorganization under the provisions of this Act shall receive separation benefits to
which they may be entitled under Executive Order No. 366, s. 2004: Provided, That those
who are qualified to retire under existing retirement laws shall be allowed to retire and
receive retirement benefits to which they may be entitled under applicable laws and
issuances.

SECTION 15. Structure and Staffing Pattern. - Subject to the approval of the DBM, the
PhilSA shall determine its organizational structure and create new divisions or units as it
may deem necessary, and shall appoint officers and employees of the PhilSA in accordance
with the civil service law, rules and regulations.


SECTION 16. Magna Carta. — Qualified employees of the PhilSA and its attached units shall
be covered by Republic Act No. 3439, known as magna carta for scientists, engineers,
researchers and other science and technology personnel in the government.

SECTION 17. Annual Report. - The PhilSA shall submit to the President and to both Houses
of Congress, not later than March 30 of every year following the effectivity of this Act, a
report giving a detailed account of the status of the implementation of this Act and
recommended legislation, where applicable and necessary.

SECTION 18. Funds of the PhilSA. — The funds of the PhilSA shall consist of:

a) the annual General Appropriation for the PhilSA;
b) Income, fees, royalties and other revenues obtained from any other sources;

The funds shall be administered by the Director General of the PhilSA in accordance with
existing government budgeting, accounting and auditing rules and regulations.

SECTION 19. Philippine Space Development Fund. - There is hereby created the
Philippine Space Development Fund to be used exclusively for the PhilSA. The Philippine
Space Development Fund shall be administered by the Director General of the PhilSA in
accordance with existing government budgeting, accounting and auditing rules and
regulations. The Philippine Space Development Fund shall be sourced from the following:

a) The amount of ten billion pesos (P 10,000,000,000.00) to be taken from the share
of the National Government in the gross income of the Philippine Amusement and
Gaming Corporation (PAGCOR) and the Bases Conversion and Development
Authority (BCDA). For five (5) years after the effectivity of this Act, an amount of
two billion pesos (P 2,000,000,000.00) per year shall be released to the PSA. The
entire amount of ten billion pesos (P 10,000,000,000.00), including any interest
income thereon, shall be used exclusively for capital outlay.

b) Income from specialized products, services, and royalties produced by the

PhilSA.

Loans, contributions, grants, bequests, gifts, and donations whether from local or

foreign sources. Provided, That acceptance of grants, bequests, contributions and

donations from foreign governments shall be subject to the approval of the

President upon the recommendation of the Director General of the PhilSA and

Secretary of the Department of Foreign Affairs (DFA). The Director General with

the approval of the NEDA and subsequently the Department of Finance (DOF) is

hereby granted the authority to enter into loan agreements with foreign financial
institutions.

°)

SECTION 20. Appropriations. — The sum of One Billion Pesos (PHP 1,000,000,000.00) is
hereby appropriated as initial operating fund of the PhilSA, taken from the current fiscal
year’s appropriation of the Office of the President, Department of Science and Technology,
and Department of National Defense. Thereafter, the amount needed for the operation and
maintenance of the PhilSA shall be included in the General Appropriations Act.

SECTION 21. Implementing Rules and Regulations. - The PhilSA, DBM, CSC and other
government agencies concerned shall issue within ninety (90) days from the effectivity of
this Act the necessary rules and regulations for the effective implementation of this Act.


SECTION 22. Separability Clause. - If any provision of this Act shall be declared
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full
force and effect.

SECTION 23.Repealing Clause. — All laws, decrees, executive orders, rules and regulations
and other issuances or parts thereof which are inconsistent with this Act are hereby
repealed, amended or modified accordingly.

SECTION 24. Effectivity.- This Act shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation.

APPROVED.