Republic of the Philippines

HOUSE OF REPRESENTATIVES SATE September 5, 203%)

Quezon City, Metro Manila
* TIME 1:23 pm iy
NINETEENTH CONGRESS,

Second Regular Session

House Bill No.9038,

Introduced by Representatives JOCELYN P. TULFO, ERWIN T. TULFO, EDVIC YAP
and RALPH WENDEL P. TULFO

This bill seeks to strengthen and modernize the Philippine Coast Guard (PCG) to
realize the State's obligation to protect the country's marine wealth and defend the
country's rights and sovereignty in its archipelagic waters, territorial sea, and exclusive
economic zone.

Pursuant to Republic Act No. 9993 or the “Philippine Coast Guard Law of 2009”,
two (2) of the important functions of the PCG is to (1) 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 of the Philippines; and (2) enforce laws
and promulgated and administer rules and regulations for the protection of marine
environment and resources from offshore sources, or pollution within the maritime
jurisdiction of the Philippines.

Despite the tireless efforts of the PCG to fulfill ts duties, its equipment, ships, and
technological capacity still fail in comparison to other countries that pose a threat to our
national security and sovereignty. The most recent hostile act of the Chinese Coast Guard
against the Philippine Coast Guard in the West Philippine Sea is sufficient proof of the
threats we are fighting against and the lacking capacity of the PCG to perform their
duties.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
Second Regular Session

House Bill No. __ 9038

Introduced by Representatives JOCELYN P. TULFO, ERWIN T. TULFO, EDVIC YAP
_and RALPH WENDEL P. TULFO

AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, AMENDING FOR THIS
PURPOSE REPUBLIC ACT NO. 9993, OTHERWISE KNOWN AS THE
“PHILIPPINE COAST GUARD LAW OF 2009”

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 “Philippine Coast Guard

Modernization Act of 2023”.

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to develop

the Philippine Coast Guard (PCG), and ensure the continued protection and defense of
our maritime borders, economy, and environment. Toward this end, the Modernization
Program under this Act shall develop and enhance the capabilities of the PCG to

effectively perform under the following functional areas:

a) Maritime Safety;

b) Maritime Search and Rescue;

©) Maritime Security;

d) Maritime Law Enforcement; and -

) Maritime Environment Protection.


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Sec. 3. Philippine Coast Guard Modernization Program. - Within a period not
exceeding fifteen (15) years after the effectivity of this Act, the PCG shall implement the
Philippine Coast Guard Modernization Program, hereinafter referred to as the Program.
The PCG shall continue to perform its powers and discharge its functions as provided in
Section 3 of Republic Act No. 9993, also known as the “Philippine Coast Guard Law of

2009".

Payments for the amortization of outstanding multi-year contract obligations

incurred under Section 7 of this Act may however extend beyond this period.

Sec. 4. Objectives. - The PCG Modernization Program shall be implemented in

accordance with the following objectives:

a) Minimize, if not totally eliminate, accidents at sea;

b) Optimize search efforts and hasten response time during search and rescue
operations;

©) Contribute substantially to securing maritime zones and territorial waters from
terrorism, lawlessness, and other threats to national security and territory of the
country;

4d) Effectively contribute to the enforcement of the Philippine criminal and other
special laws within the maritime zones and territorial waters of the Philippines;

and

e) Minimize, if not totally eliminate, pollution in the maritime zones or areas and

hasten response time in cases of emergencies.

Sec. 5. Components of the Modernization Program. ~ The PCG Modernization

Program shall have the following components:


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a) Organization Development - The restructuring and streamlining of the PCG units
and offices to avoid the overlapping of functions, streamline procedures, and
improve response time.

b) Human Resources - The professionalization of its human resource with qualified,
motivated, and highly skilled personnel in their respective fields of specialization.

©) Doctrine of Development - The rationalization system, standards, and procedures
in the administration of the PCG include the generation, evaluation, consolidation,
and formalization of doctrines; the conduct of the periodic review and validation
of doctrines through field application, testing, and exercises; and the
dissemination of approved doctrines at all levels of command.

d) Infrastructure Development - The basic and support system required to ensure
that services are rendered efficiently includes the acquisition and upgrade of basic
and support facilities for administrative and operational services, and the
acquisition and upgrade of basic facilities such as aircraft command, control, and
communication platform which are range and endurance-capable to continuously
monitor the outer limits of the Exclusive Economic Zone (EEZ) with night-vision
capability and remote-controlled drones.

e) Equipment and Facilities Acquisition and Modernization - The acquisition and
upgrade of contemporary, modern, and state-of-the-art equipment and system to
enhance the capabilities of the PCG in the performance of its mandate which

includes the following:

1) Upgrade vessels to a mission-specific level with a high degree of flexibility
to perform other functional area operations. PCG vessels must be well-
maintained for full operational status at least three hundred (300) days a
year and must be interfaced with the latest cutting-edge technology for

ease of operation;


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2) Remotely operated submersibles for deep-sea search, retrieval, and
monitoring operations;

3) Weapons that are marine environment resistant and designed primarily to
disable hostile personnel and equipment;

4) K-9 units capable of detecting bombs, drugs, and toxic substances and
assisting in search and rescue (SAR) operations, among others;

5) Uninterruptible PCG internal communications seamlessly interoperable
with other agencies as well as communications with commercial vessels
operating within the Philippine maritime zones and territorial waters;

6) Training equipment capable of simulating foreseeable emergencies or
hostile situations;

7) Aids to navigation that are consistent with International Association of
Lighthouse Authorities standards;

8) Accurate and real-time monitoring and detection systems; and

9) Laboratories with technologically current equipment.

Sec. 6. Submission of the Modernization Program. ~ Within ninety (90) days
from the effectivity of this Act, the PCG Commandant shall, in coordination with the
Secretaries of the Department of Transportation (DOTr) and the Department of
Budget and Management (DBM), submit the PCG Modernization Program through
the Congressional Oversight Committee created under Section 14 hereof for its
consideration and approval through a joint resolution of the House of

Representatives and Senate of the Philippines.

‘The Program shall indicate the following:

a) The size and shape of the PCG in terms of personnel, equipment, and facilities

during the various phase of the Program;


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b) The modernization project under each phase including the major weapon and
non-weapon equipment and technology acquisition, infrastructure construction
or improvements to be made, and the particular objectives and components
under Section 4, respectively of this Act, to which such intended acquisition,
constructions or improvements belong; and

©) The priorities, schedules as well as the estimated average cost for each

modernization component project or upgrading to be undertaken.

In the event Congress approves the PCG Modernization Program, the joint
resolution shall be the basis for subsequent executive and legislative actions to

implement the program until its completion and full realization.

Sec. 7. Multi-year Contracts. - The Secretary of the DOTr may, pursuant to the
program, projects, and appropriations approved by Congress and subject to the
approval by the President, enter into multi-year contracts and other agreements or
arrangements in accordance with the provisions of existing laws and regulations
including those of the Commission on Audit (COA) and under such terms and

conditions most favorable to the government.

‘The Congress shall, upon certification by the President, make the corresponding
appropriation for the ensuing fiscal year in payment for multi-year contracts:
Provided, that Congress shall appropriate only such funds as may be necessary to pay
any unpaid amount when the appropriated funds mentioned in Section 13 of this Act

are not sufficient or available to meet the payment, in full or in part.

The Secretary of the DOTr, through the Congressional Oversight Committee, shall
submit copies of these multi-year contracts and other agreements or arrangements to

enable Congress to appropriate funds.


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SEC. 8. Self-Reliance Program. - in implementing the Program, the PCG shall,
as far as practicable, give preference to qualified Filipino contractors and suppliers,
willing and able to locate a substantial portion on, if not the entire, production process

of the terms involved within the Philippines.

In order to generate local employment opportunities, and enhance technology
transfer to the Philippines, the Secretary of the DOTr shall, as far as feasible,
incorporate in each contract or agreement, special foreign exchange reduction
schemes such as countertrade, in-country manufacture, co-production, or other

innovative arrangements or combination thereof.

‘The PCG shall likewise ensure that in negotiating all applicable contracts or
agreements, provisions are incorporated respecting the transfer to the PCG of the
principal technology involved as well as the training of the PCG personnel to operate

and maintain such equipment and technology.

Sec. g. Philippine Coast Guard Modernization Trust Fund. - There is hereby
created a trust fund, to be known as the Philippine Coast Guard Modernization Trust
Fund, to be administered by the Secretary of the DOTr in accordance with existing
rules and regulations. The trust fund shall be used exclusively for the PCG
Modernization Program, excluding salaries and allowances. The trust fund shall be

funded out of the following:

a) Appropriations for the Philippine Coast Guard Modernization Program;

b) The proceeds from the sale, lease, or joint development of coast guard properties

and lighthouse reservations, as.may be authorized by Congress, including such

immovable and other facilities as may be found therein, not covered by the Bases


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Conversion and Development Authority, as provided for in Republic Act No. 7227,
as amended, otherwise known as the Bases Conversion and Development Act of

1992;

©) Shares of the PCG from the proceeds of the sale of the coast guard properties

provided for under the Bases Conversion and Development Act of 1992;

d) The proceeds from the disposal of excess or uneconomically repairable equipment

and other moveable properties in the PCG arsenal;

e) Funds from budgetary surplus, if any, as may be authorized by Congress subject

to the provisions of Section 13 of this Act;

f) Dues, fines and penalties collected by the PCG in the exercise of its functions; and

g) All interest income from the trust fund.

Sec. 10. Equipment Acquisition Per Function Area. - In order to further
specialize PCG capabilities, equipment acquisition shall be initiated within the
respective functional areas as mentioned in Section 2 of this Act but integrated into

the Program to allow inter-operability and ensure a greater degree of reliability.

Sec. 11. Contract Negotiation. - The procurement process shall be governed by
the provisions of Republic Act No. 9184 or the “Government Procurement Reform
Act”, and its revised implementing rules and regulations. The procurement process
shall be exercised by the PCG General Headquarters unless delegated to the next

lower-level management by the PCG, Commandant.


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Sec. 12. Progress Report. - The Secretary of the DOTr shall submit to the
President and Congress, through the Congressional Oversight Committee, an annual
report on the status of the Philippine Coast Guard Modernization Act Trust Fund, as
provided for in Section 9 of this Act, not later than the end of the first quarter of the
succeeding year.

The Commandant of the PCG shall also submit to the President and Congress
through the Congressional Oversight Committee and the Secretary of the DOTr, an
annual status report containing the process of the implementation of the
modernization program under this Act, including the PCG modernization activities
implemented prior to the approval of this Act not later than the end of the first quarter
or the succeeding year.

Sec. 13. Appropriations. - The annual appropriation for the PCG modernization
program shall include the amounts necessary to support the funding requirement for

all modernization projects approved by Congress pursuant to this Act.

The funds to be appropriated by Congress shall be treated as a di

‘inct and separate
budget item from the regular appropriation for the PCG and shall be administered by
the Secretary of the DOTr. The proposed program shall be based on a ceiling of Fifty
Billion Pesos (Php50,000,000,000.00) for the first five (5) years. Thereafter, this
amount may be increased commensurate to the increase in the Gross National Product
(GNP).

Sec. 14. Joint Congressional Oversight Committee. - A Joint Congressional
Oversight Committee is hereby created to monitor and oversee the implementation of
the provisions of this Act. The Joint Congressional Oversight Committee shall be

composed of six (6) Senators and six (6) District or Partylist Representatives to be


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appointed by the Senate President and the Speaker of the House of Representatives,
respectively. It shall be co-chaired by the Chairperson of the Committee on
Transportation of both Houses. The minority parties of both houses shall have at least

two (2) representatives in the Joint Congressional Oversight Committee.

Sec. 15. Sunset Review. ~ Five (5) years after the effectivity of this Act, the Joint
Congressional Oversight Committee shall conduct a systematic evaluation of the
accomplishments and impact of this Act as well as the performance and organizational

structures of the PCG.
Sec. 16. Separability Clause. - If any provision of this Act is declared invalid or
unconstitutional, the remaining provisions not affected thereby shall continue to be in

full force and effect.

Sec. 17. Repealing Clause. ~ All laws, decrees, orders or regulations or part thereof
inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 18. Effectivity. - This Act shall take effect fifteen (15) days following the
completion of its publication in the Official Gazette or in a newspaper of general

circulation.

Approved.

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